border foreign direct investment and cross-border retail trade. Figures on intra-EU trade do not distinguish between wholesale and retail trade. Therefore hard data on the real level of cross-border sales is missing. Proxies for this statistic may be available from payments systems. In the interim, survey data on cross-border trade reported by consumers and business should be tracked regularly to provide evidence. 28. Consumer and retailer attitudes to cross-border selling and buying are also important for monitoring perceptions and measuring progress towards the goal of boosting confidence in cross-border buying and selling. Price data collected to monitor consumer markets will also allow the use of price dispersion as an indicator of the level of integration of the market.
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The establishment of average prices for a range of representative products across all consumer markets will also provide a basis to indicate where abnormal price divergence may exist and therefore where there may be an underlying market malfunctioning or a lack of integration of markets. Anecdotal evidence of unexplained price differences does exist. The impact of purchasing power parity on price differences, the normal variation present within a market and the extent to which the product is genuinely tradable across the internal market will all need to be taken into account in the analysis of the price differences. An overall coefficient of variation for all products will identify products with extreme variations which may or may not be explained without reference to market functioning. Data on average prices by Member States will help to identify where national markets may not be working. Data on price levels and differences will be analysed in conjunction with other data on switching, the use of e-commerce or the level of cross-border trade of tradable goods in a particular sector in order to understand the impact of competition, the internet and cross-border shopping on pricing.
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The 66 products analysed belong to seven COICOP categories: Food & non alcoholic beverages; Alcoholic beverages & tobacco; Clothing & footwear; Household appliances; Recreation & culture; Other services. Price data on cars, energy, bank fees and telecommunications are available from other sources. It must be stressed that the data on indicative prices for the 66 products were collected as a research project and are experimental. The data come from the collection regularly undertaken for the calculation of Harmonised Indices of Consumer Prices which aim at evaluating the evolution of prices over time, and not comparing price levels between countries. The products included within the same general product description are thus not necessarily fully comparable. In different countries different products may be selected, for example, those which are most typical for the individual country, and the products selected may therefore be of different quality, for different brands or collected in different types of outlets 7 .
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This study aims to identify the influential factors of shopping patterns in commercial markets. The study was carried out on a random sample consisting of 249 consumers in the city of Amman. The study also used a questionnaire as an essential tool to collect data for the study population; also it used scientific research in the field of commercial markets and consumer behaviors in collecting secondary data. After conducting a statistically significant analysis, the study showed the following results: the study sample is affected by the quality of provided services and how much these services exhibit convenience and appropriate use. Also, the promotional policies such as advertising, samples, gifts and withdraw on goods and much more can attract customers towards these markets. Moreover, the study found that psychological factors and consumes’ patterns of purchasing have a direct impact on their choices of commercial markets.
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8. The strength of the single market is that it is not only an economic project but it also safeguards social standards. For example, concern for human health, the environment and safety means that consumer prod- ucts are strictly regulated. Aff ordable access to certain essential services, vital for economic and social inclusion, is guaranteed to all, wherever they live. The concept of "market malfunctioning" should therefore be under- stood in the Scoreboard context as covering both ineffi cient allocation of resources and a failure to deliver these broader outcomes. Market malfunc- tioning also needs to be seen in terms of the ability of consumers to make empowered and informed decisions and therefore the extent of complex pricing that impairs consumer's ability to compare tying and bundling off ers redirecting of consumer attention from expensive fees to competi- tive upfront costs, restrictive contract terms which lock consumers in and prevent switching, etc.
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Online testing tools may be able to identify whether a contract is expressed in plain language, but they cannot necessarily assess its intelligibility. Assessing whether a contractual clause is expressed in plain and intelligible language requires the synergistic use of other methodologies that can more directly probe the processing and understanding of texts on the part of the reader. In this sense, a typical paradigm might involve the use of methods to evaluate the ways that consumers read texts, and comprehension questions to assess understanding and retention of information. Such an approach is unlikely to provide the simple, cheap, answers that reading scores might, but is more likely to gauge appropriately both the plainness and intelligibility of text by being able to consider both how the average consumer reads, and how a particular consumer reads. This is particularly important where a contract is either targeted at vulnerable consumers, or is likely particularly to affect vulnerable consumers. This is because the online tool is premised on determining the level of readability of a document; it does not consider whether the document would be able to be understood by a likely reader. This is a function that must be undertaken by a regulator, who needs to determine the appropriate standard that a contract should reach. Also, this should be context-specific rather than legislatively uniform for every contract in a particular sector.
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Third category, post-hoc descriptive methods, subsumes clustering techniques and analysis based on latent variables. In demographics, ﬁ rst principal component analysis is applied to uncover most pertinent consumer characteristics. In second stage, cluster analysis then executes the formation of ﬁ nal segments (Jadczaková, 2011). In psychographics factor analysis is alike used to translate the large battery of AIO (attitudes-interests-opinions) statements to a smaller number of more meaningful key factors which are then used as inputs in cluster analysis (Jadczaková, 2010a and 2010b). If graphical representation of distances/associations between variables or objects (Jadczaková, 2011) or variables and objects is the concern, MDS or correspondence analysis might be performed. Both techniques use biplot diagram projecting relationships into a 2-dimensional plane. By doing so, it may be, for instance, investigated which customer segments are more than average attracted by which motivating concepts (e.g. products, brands, service, product attributes, etc.). Owing to this, these so called perceptual mapping techniques are highly encouraged to be used for beneﬁ t segmentation.
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During the period of “Eight-five project” from 1985, the growing rate of consumption is far greater than the increasing rate of resident’s income and keeps growing in the following years (Figure 2). On the other hand, people’s deposit amount has reached RMB 3.9 trillions Yuan, which means the potential purchase power will be strong in the consumer markets (Figure 2). However, China went through 5000 years of feudal culture, thirty years of closed-suffering life of communism, and mod- ernization through reform to use liberal policy to pursue substantial civilization. The transitions of culture, institu- tion, and mental perception, have great impacts on Chi- nese people’s values, consumer conceptions and even on consumer behavior . Therefore, foreign traders who are planning to enter the Chinese market need to under- stand the intrinsic values of Chinese culture, consumer perception and behavior to make the foundations of their marketing strategies and plans.
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The emerging markets have also witnessed a surge in consumption. They are showing signs of a large sized middle- income section, which as a large section of the population had a better disposable income than in the past. The UNCTADD Report states – “Using the concept of a representative consumer is less helpful when income distribution is taken into account. For example, socioeconomic class is likely to be a very important determinant of individuals‟ consumption patterns (e.g. Lluch, Powell and Williams, 1977). People who are better off dispose of discretionary income and can shift their consumption pattern away from only necessities. It implies that consumers will start spending beyond goods that only satisfy their basic, or subsistence, needs once their income exceeds a certain threshold.
A feature which is different from McCarthy’s theory and which is getting more and more importance in urban markets also gets further intensified in the rural markets, and that is packaging. Most of population in rural India is illiterate. Thus when they do watch television and go to the shopkeeper for any specific product, then they don’t’ ask for any brand but try to recognize the product by its packing. This is the reason that we found a number of local brands available on village shops imitating the packaging of nig companies like Lakme, Parle, Lux, Colgate etc. Even when they are not sure about their choices, attractive packing makes a lot of difference in reaching the final decision for the customer. It should be decorative and in synchronization with the local culture. Writing product’s name in local language can also make a difference in creating consumer awareness and making a sustainable customers-base. The packing size should also be small enough so that storing them should not become a problem for the customer. It also helps in reaching those customers who don’t have any savings but earns on daily basis to meet their daily customers who don’t have any savings but earns on daily basis to meet their daily requirements, as the smaller packs provides them an opportunity to purchase some minimum quantity of product by paying lesser amount of money.
Technological advances of today enable producers to carry out shopping operations with their consumers on a virtual platform. This so called e-commerce has countless benefits for both producers and consumers at the same time. E-commerce, which provides consumers with the opportunity of shopping for a constitutively reasonable price and saving of time, is increasing its popularity from day to day. Despite this, there are also certain obstacles for consumers regarding online purchasing. In the given study, factors that influence consumers’ attitude on online purchasing have been examined within the context of confidence element. In addition to this, the effect of variables of website quality, safety/privacy, consumer reviews and website reputation on the attitude of online purchasing in the context of consumer confidence have been studied.
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There are a number of risks that affect foreign investors in new markets including market risks such as lack of market information on the trends of the market, consumer behavior in response to different products and services, information available goods and services, opportunities available, legal issues arising on work permits, lease of land, business licenses and licenses, labor laws of the country and any political or economic risks adherent in the host market (Verdict Research 2005).Politically and socio-economically Oman is a part of the GCC nations group. Oman‟s positional multilateral relationships, GCC, MENA and Pan Arab FTA‟s and trade relationships are strong and notable. Oman‟s role in GCC politics and international relationships are significant due to its stability and international relations between various nations.
The evolutionary model of a competitive market can be understood as follows. Let us consider a durable (expensive) consumer good produced for an anonymous market. In a competitive market a number of different variants of the same good are available. These variants are called here brands. The brands are manufactured by business units, while firms may consist of a number of business units. Consumers have the choice between these brands. The key idea is that the reproduction of the brands is governed by a positive feedback mechanism. Best selling brands, will be reproduced with a much higher rate than slow sellers. In other words, the manufacturers respond on increased sales of a brand with a higher output, because they want to make profit. Further, they create variants of the best selling brands and stop the production of the slow sellers. As a result, after sufficient time, the durable good evolves such that it suits the major consumer demand.
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Direct-to-consumer marketing of locally and regionally produced foods has been a rapidly growing trend in the United States over the past several decades. Data from the most recent U.S. Census of Agriculture, for example, showed that direct-to-consumer sales accounted for $1.2 billion of total agricultural sales in 2007, a 77 percent increase since 1992 (Low & Vogel, 2011). To meet this growing demand, the number of farmers markets, community supported agriculture programs, and other local foods venues are all increasing in number each year (MacMillan, Uribe, Winham, & Wharton, 2012; McCormack, Laska, Larson, & Story, 2010). Farmers markets make up the largest proportion of direct-to-consumer marketing venues and have seen considerable growth both in rural and urban areas. In the early 1990s, fewer than 2,000 markets existed in the U.S; by 2014, however, 8,268 markets had been estab- lished (Low & Vogel, 2011; U.S. Department of Agriculture [USDA] Agriculture Marketing Service, 2014). Further, farmers markets are now seen as important venues for healthy food access and improving the food environments in which consumers make food choices (Holben, 2010;
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Retailers are also adjusting their policies to reflect current and potential consumer concerns and to differentiate their markets. A traditional market for New Zealand is the UK a market dominated by a few retailers. These retailers do vie among teach other to differentiate product through various methods including market assurance schemes. Their behaviour is also important as they have dominance in world food supply chains both directly through operating in other countries but also indirectly through setting standards that are mimicked elsewhere. As shown in Table 1 below, in May 2013, Tesco had the greatest shares for the UK (30.2 per cent) (GroceryNews, 2013). This is partly due to Tesco’s investment in new stores between 2011 and 2013, which saw the number of UK-based Tesco retailers increase by 13.5 per cent (2,715 UK- based stores in 2011; 3,146 UK-based stores in 2013) (Tesco, 2013b). Tesco was followed in market shares by Asda (17.2 per cent), Sainsbury’s (16.8 per cent), Morrisons (11.6 per cent), Waitrose (4.9 per cent), Aldi (3.5 per cent) and Lidl (3.0 per cent) (GroceryNews, 2013). UK discount retailer Aldi, whilst still having a relatively low market share, has recently achieved record sales growth at 31.5 per cent (Kantar Worldpanel, 2013). This was partially due to Aldi’s recent expansion of market presence, in which the retailer doubled the number of its UK-based outlets, following an upsurge of consumers choosing discount retailers as their preferred location for grocery shopping. The retailer also hopes to increase the number of UK-based outlets to 500 by the end of 2013 (Sparkes, 2012).
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It has been observed in the above analysis that the difference between producer's share in rural-urban retail prices is almost negative for most of the fruits and vegetables in all the five location and this dif- ference was highest in perishable fruits and vegetables than less perishable ones. The above analysis, however, highlighted that the retail prices in rural areas for most of the fruits and vegetables was higher as compared to the retail prices of these commodities in urban retail outlets. These commodities are first routed to urban markets, and after changing hands are routed back to rural markets, at which point additional costs associated with transportation charges, loading/unloading charges, commissions, and other costs are incurred.
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8 J. Altkorn Market segmentation is the division of the market, on the basis of specific criteria, into relatively homogeneous partial markets (relatively homogeneous consumer groups) called segments, which determine the area of enterprise expansion and constitute a reference point for determining the target market and marketing strategy.
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This paper is organized as follows. Section 2 constructs the basic model. First, we determine the optimal values of outputs, prices, profits and consumer surplus before globalization, for each market. Then, we examine the corresponding equilibrium values after globalization. Section 3 analyzes the effect of globalization on consumers, companies, and markets. It is done through the determination of conditions that indicate when those variables are increased or reduced. Section 4 compares the previous results with the case where after globalization the not-for-profit firm is friendly only to the local consumers in its original market. We also examine the welfare effect of globalization on the mixed duopoly in the original market with the consumer-friendly firm. The final section concludes the paper.
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Finally, we allow the manufacturer to set non-linear contracts to her retailers. We show that our main conclusion, namely that manufacturers may benefit from choosing asymmetric contracts across different retailers when retailers compete in consumer mar- kets, continues to hold if manufacturers choose two-part tariffs. In this setting, when restricting the manufacturer to symmetric contracts, her rents are non-monotonic in the fraction of shoppers: she may extract monopoly rents both when all consumers are shoppers (Bertrand competition in the retail market) and when all consumers are non-shoppers, but not in between. Retail price dispersion creates noise in the man- ufacturer profit function, restricting the rents she can extract. By treating retailers asymmetrically, the manufacturer eliminates the retail price dispersion (and the noise from his perspective). We show that for intermediate values of the fraction of shoppers, the manufacturer may benefit behaving this way.
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Looking further at the age group results presented in Table 3, it is interesting to note that the coefficients for negative changes in CSI ( are the largest for the 18-34 year old age group. Also, for all age groups, has the predicted positive sign. But with the youngest age group, they show signs of exhibiting the highest aversion to downside risk because of the magnitude of the coefficient (0.450 for CRSP EW returns and 0.423 for CRSP VW returns). The oldest age group, 55 years old and older, show signs of exhibiting the lowest aversion to downside risk because of the magnitude of the coefficient (0.279 for CRSP EW returns and 0.247 for CRSP VW returns). This contradicts Bakshi and Chen (1994) who argue that risk aversion increases with age but overall results for changes in the composite CSI and CSI for age groups display evidence that is consistent with the prospect theory of Kahneman and Tversky (1979) as losses appear to be of greater concern than gains. One possible explanation is that of Reilly and Brown (2008) with individuals in the accumulation life cycle phase. Even though younger and middle aged individuals are both in this life cycle phase, the youngest age group should naturally have a desire to accumulate more being that they probably have their least amount of assets amongst all age groups since they are relatively young. As such, when their consumer sentiment deteriorates, the potential for lower stock returns could be larger being that this is most likely candidate for having seeking the most amount of consumption and investment.
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