Empirical regularities in average price paid across different types of households. Issue 4 (November 2017)

• Record Type: Journal Article
• Authors: Pare, Vipul; Trinh, Giang; Wright, Malcolm
• Is Part Of: Australasian marketing journal. Volume 25:Issue 4(2017)
• Page Start: 269
• Page End: 277
• Publication Date: 2017-11
• Subjects: Pricing -- Household type -- Consumer packaged goods -- Empirical regularities; Marketing -- Australasia -- Periodicals; Marketing -- Periodicals; 658.8480905
• DOI: 10.1016/j.ausmj.2017.11.002
• Languages: English
• ISSNs: 1441-3582

Abstract

Highlights: Strong evidence of the relationship between different types of households and purchasing price is highlighted. Average purchasing price follows a systematic pattern as households move from one household stage to another. The discovered regularities in the relationship between key household types and purchasing price are consistent. Compared to food categories, the variations in price paid for nonfood categories is greater. Abstract: This research examines the relationship between the average price paid by a household for consumer packaged goods and different types of households. Using panel data that consists of approximately 17, 000 households per year, we examine 24 consumer packaged goods categories across 6 years (2005–2010) to understand the way in which average purchasing price varies across five key household types or stages, and to highlight generalizability. We find systematic patterns with respect to average price paid as households pass through key household stages. The changes follow an S-shape pattern across multiple product categories. The average purchasing price declines as households move from the pre-family stage to the young family stage, increases at the older family and post-family stages, and then decreases slightly at the single elderly stage. Overall, the most significant change is from the pre-family stage to the young family stage, followed by the change from the older family stage to the post-family stage. The differences hold across multiple years. The effects, however, are larger for nonfood than for food categories. Our results suggest that in order to broaden the brand customer base, brand managers need to have a product portfolio that includes both low and high price variants as well as presence across different distribution channels to satisfy the need of different types of households. Chinese Abstract: 本研究考察了家庭对民生消费用品的支付平均价格和家庭生活周期不同阶段之间的关系。使用包含每年约17, 000个家庭的面板数据，我们检测了6年（2005 - 2010年）中24种民生消费品的类别，以了解家庭生活周期中平均采购价格变化的方式，并突出概括性规律。我们发现，当家庭经历不同生活周期的阶段时，平均支付价格存在相应的系统性模式。在多种产品类别中，这一变化都遵循了S形曲线。平均购买价格随家庭从形成阶段转向年轻家庭阶段而降低，在老年家庭和空巢阶段增加，然后在老年独居阶段略有下降。总体而言，最显著的变化是从家庭形成阶段到年轻家庭阶段，其次是从老年家庭阶段转变到空巢阶段。这种差异规律在各个年代都有所体现。然而，这种效应在非食品类别中比食品类别中更大。我们的研究结果表明，为了扩大品牌客户群，品牌经理需要有一个包括低价格变动和高价格变动的产品组合，以及不同的分销渠道，以满足不同阶段的家庭生活周期的需要。