This thesis includes three essays which examine the implications of incorporating parameter heterogeneity, consideration set heterogeneity, and decision rule heterogeneity, respectively, in brand choice models. In the first essay, we identify the conditions under which unaccounted for price response heterogeneity results in a spurious sticker shock effect. We show, using an analytical derivation, a simulation study and an empirical application to scanner panel data, that estimates of the sticker shock effect may be biased if households that are price sensitive in their brand choice decision are also more likely to respond to category marketing activity in their purchase timing decision. The empirical results, from two product categories, show that the sticker shock coefficient from a Hierarchical Bayes model (which continuously accounts for price response heterogeneity) is statistically insignificant, providing no evidence of the existence of a sticker shock effect. In contrast, the corresponding coefficient from the standard model, which ignores this heterogeneity, is highly significant and supports the existence of a sticker shock effect. A posterior analysis of household parameters confirms the hypothesized relationship between price sensitivity in brand choice and responsiveness to promotional activity in purchase incidence, and is consistent with our explanation of the underlying cause of the bias in the standard model. The second essay develops a new consideration set model that can be estimated with scanner panel data. In contrast to many previous approaches, which require enumeration of all possible consideration sets, we directly model uncertainty about including a brand in the consideration set. The resulting inclusion probabilities for brands reflect a "fuzzy" consideration set in the sense that a brand belongs to the consideration set only probabilistically. The proposed fuzzy set model outperforms several previous consideration set models in two product categories (yogurt and ketchup). We then apply the fuzzy set approach to examine the role of the consideration set in moderating the impact of advertising on price sensitivity. In contrast to the experimental findings of Mitra and Lynch (1995), we find no positive relationship between consideration set size and price sensitivity. Further empirical test may be necessary to confirm the hypothesized relationship. In the third essay, we investigate the role of decision rule heterogeneity in brand choice behavior. We develop a flexible model, which allows for the uncertainty in decision rules used by the consumer. Specifically, we develop a Hierarchical Bayes model of reference price effects that accommodates both the sticker shock and reference-dependent formulations. In addition, we also incorporate the possibility that consumers may mix the two decision rules probabilistically. Therefore, the proposed model allows for three different decision hierarchies which incorporate sticker shock, reference-dependent and mixed rules respectively. The empirical results show that consumers differ not only in their preference and response but also in their decision rules. On average, half the sample households appear to show loss aversion, i.e., follow a reference-dependent decision rule, while the remaining households do not seem to respond to reference prices. The proposed model provides a richer description of consumer choice processes than the comparison models that allow for only one model structure and ignore model uncertainty.

This thesis includes three essays which examine the implications of incorporating parameter heterogeneity, consideration set heterogeneity, and decision rule heterogeneity, respectively, in brand choice models. In the first essay, we identify the conditions under which unaccounted for price response heterogeneity results in a spurious sticker shock effect. We show, using an analytical derivation, a simulation study and an empirical application to scanner panel data, that estimates of the sticker shock effect may be biased if households that are price sensitive in their brand choice decision are also more likely to respond to category marketing activity in their purchase timing decision. The empirical results, from two product categories, show that the sticker shock coefficient from a Hierarchical Bayes model (which continuously accounts for price response heterogeneity) is statistically insignificant, providing no evidence of the existence of a sticker shock effect. In contrast, the corresponding coefficient from the standard model, which ignores this heterogeneity, is highly significant and supports the existence of a sticker shock effect. A posterior analysis of household parameters confirms the hypothesized relationship between price sensitivity in brand choice and responsiveness to promotional activity in purchase incidence, and is consistent with our explanation of the underlying cause of the bias in the standard model. The second essay develops a new consideration set model that can be estimated with scanner panel data. In contrast to many previous approaches, which require enumeration of all possible consideration sets, we directly model uncertainty about including a brand in the consideration set. The resulting inclusion probabilities for brands reflect a "fuzzy" consideration set in the sense that a brand belongs to the consideration set only probabilistically. The proposed fuzzy set model outperforms several previous consideration set models in two product categories (yogurt and ketchup). We then apply the fuzzy set approach to examine the role of the consideration set in moderating the impact of advertising on price sensitivity. In contrast to the experimental findings of Mitra and Lynch (1995), we find no positive relationship between consideration set size and price sensitivity. Further empirical test may be necessary to confirm the hypothesized relationship. In the third essay, we investigate the role of decision rule heterogeneity in brand choice behavior. We develop a flexible model, which allows for the uncertainty in decision rules used by the consumer. Specifically, we develop a Hierarchical Bayes model of reference price effects that accommodates both the sticker shock and reference-dependent formulations. In addition, we also incorporate the possibility that consumers may mix the two decision rules probabilistically. Therefore, the proposed model allows for three different decision hierarchies which incorporate sticker shock, reference-dependent and mixed rules respectively. The empirical results show that consumers differ not only in their preference and response but also in their decision rules. On average, half the sample households appear to show loss aversion, i.e., follow a reference-dependent decision rule, while the remaining households do not seem to respond to reference prices. The proposed model provides a richer description of consumer choice processes than the comparison models that allow for only one model structure and ignore model uncertainty. / Business, Sauder School of / Graduate

There is a growing need to better understand what influences user behavior for developing comprehensive IT security systems. This study integrates two prominent bodies of research, the theory of planned behavior used to frame the factors influencing user behavior and individual level climate perceptions used to frame organizational environment influences, to develop a multidimensional IT security user behavior model. The model is then used as the basis for a survey based research to empirically test the hypotheses whether the perceived IT security climate of an organization significantly influences the users beliefs regarding the use of IT security. The intent of the study is to extend the theory of planned behavior and IT security literature by investigating salient IT security beliefs and environmental influences on those beliefs. First, anti-spyware was identified as an appropriate target IT security artifact, and then incorporated into a multi-phased research approach. Second, a semi-structured interview process was used to elicit salient beliefs regarding use of the IT security artifact. Third, IT security psychological climate was conceptualized based on the extant literature on organizational climate, safety climate and IT security in order to examine the organizational environment influences on these beliefs. Finally, a survey was used to collect data to validate the constructs and test the hypothesized relationships. / The study found that there was a significant positive relationship between IT security psychological climate and 1) the belief that anti-spyware will protect organizational interests such as privacy and data, 2) the belief that anti-spyware will prevent disruptions to work, 3) the belief that the approval of anti-spyware use by the technical support group is important, 4) the belief that monetary resources are needed to enable the use of anti-spyware, and 5) the belief that time is a facilitating condition for the use of anti-spyware. A discussion of the findings and their implications for theory and practice is provided. / by Janis A. Warner. / Thesis (Ph.D.)--Florida Atlantic University, 2009. / Includes bibliography. / Electronic reproduction. Boca Raton, Fla., 2009. Mode of access: World Wide Web.

"June 2004." / Thesis (Ph.D.)--Chinese University of Hong Kong, 2004. / Includes bibliographical references (p. 138-148). / Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Electronic reproduction. Ann Arbor, MI : ProQuest dissertations and theses, [200-] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Mode of access: World Wide Web. / Abstracts in English and Chinese.

Obesity has increased dramatically in the past 25 years. The consumption of added sugar has increased significantly during the same time period. Previous research indicates a direct correlation between the consumption of added sugar and the prevalence of obesity. Sugar has been identified in multiple studies as having addictive or opiate-like qualities. Unquestionably, added sugar consumption has contributed to the current obesity epidemic. Here, we apply a reference price economic model to attempt to describe sugar consumption. Using consumption and price data from the Economic Research Service of the United States Department of Agriculture, we made a reference price estimation of domestic refined sugar (sucrose) consumption. Using time-series econometric techniques, we tested the effects of internal and external reference prices, in the form of first differenced own price and price of other nutrient classes, respectively, on sugar demand. Results indicate that internal and, particularly, external reference prices do indeed play a role in consumption decisions. However, the model lacks socioeconomic variables that may help to provide a more complete consumption picture.

by Leung Bun, Wong Kam Man. / Thesis (M.B.A.)--Chinese University of Hong Kong, 2000. / Includes bibliographical references (leaves 78-81). / ABSTRACT --- p.ii / ACKNOWLEDGEMENT --- p.iii / TABLE OF CONTENTS --- p.iv / LIST OF FIGURES AND TABLES --- p.v / Chapter / Chapter I. --- INTRODUCTION --- p.1 / Chapter II. --- LITERATURE REVIEW --- p.4 / Chapter III. --- RESEARCH MODEL --- p.10 / Chapter IV. --- RESEARCH METHODOLOGY --- p.15 / Chapter V. --- RESEARCH RESULTS --- p.20 / Chapter VI. --- DISCUSSION OF RESEARCH RESULTS --- p.34 / Chapter VII. --- IMPLICATIONS TO MANAGERS AND RESEARCHERS --- p.42 / Chapter VIII. --- CONCLUSION --- p.48 / APPENDIX --- p.49 / BIBLIOGRAPHY --- p.78

This dissertation is an empirical study of demand and supply in differentiated products markets using supermarket scanner data on two particular product categories - canned tuna and hot-breakfast cereals. First, I study the impact of retailers' price promotions on consumer demand and retailer profits in the canned-tuna product category. Since canned tuna is storable, I examine whether consumers stock up during sales. The results suggest that only a limited amount of stockpiling exists in this product category. Since inventory is not very important, consumer demand is thus modeled by a static demand model with a random-coefficients-nested-logit specification, which is estimated by the Markov Chain Monte Carlo method. The unit-sales decomposition results show that on average 36% of the demand response to price promotions comes from brand-switching, so market expansion effects due to consumers switching from the outside good and to higher quantities usually dominate the brand-switching effect. Using the demand estimates, I compute optimal retail prices assuming that stores are local monopolists and choose prices to maximize static category-level profits. I find that regular prices at "high-low" stores are typically at or slightly below the optimal prices, but that regular prices at "every-day-low-price" stores are substantially below the optimal prices. These results suggest that retail price levels and price promotions are more likely related to local market conditions such as retail competition. In addition, I study the effects of store-brand (SB) entry on the demand elasticities of incumbent national brands (NB), consumers' substitution patterns for national and store brands, and the implications for consumer welfare in the hot-breakfast-cereals product category. A random-coefficients model of consumer demand is estimated by the generalized-method-of-moments approach. The empirical findings are: (1) After the entry of SB's, demand becomes more elastic for non-imitated NB's, and either more elastic or shows no change for imitated NB's; (2) in general, substitution patterns for NB's and SB's are asymmetric, i.e., when the prices of their favorite products increase, most NB buyers tend to substitute to other NB products, but SB buyers will substitute to the corresponding imitated NB's; (3) the increase in consumer surplus due to SB entry is trivial for an individual consumer, but the aggregate benefit could be quite substantial.