Measuring Asymmetric Consumer Behavior Towards Retail Buying: Application of Demand Equation Models

Monterrey Instititue of Technology, Marketing and Business Working Paper No. 11/2006

32 Pages Posted: 7 Nov 2006

See all articles by Dr. Rajagopal

Dr. Rajagopal

EGADE Business School, Tecnologico de Monterrey (ITESM) - Mexico City Campus; Metropolitan College, Boston University

Date Written: November 2006

Abstract

This paper attempts to discuss the interdependence of variability in consumer behavior due to intrinsic and extrinsic retail environment which influence the process of determining the choices on products and services. Existing theoretical and methodological issues are reviewed in this study and a new framework has been proposed for future research in measuring customer value in specific reference to the new products as launching innovative and high technology products is a continuous process for the firms in the present competitive markets. Paper argues that suboptimal choice of consumers affect the demand of the products and services in the long-run and the cause and effect has been explained through the single non-linear equations. A system of demand equations which explains the process of optimization of consumer choice and behavioral adjustment towards gaining a long-term association with the market has also been discussed in the paper.

Keywords: Econometric modeling, consumer economics, consumption behavior, market demand, retailing, transactional relationship

JEL Classification: C51, D11, L81, M31

Suggested Citation

Rajagopal, Dr., Measuring Asymmetric Consumer Behavior Towards Retail Buying: Application of Demand Equation Models (November 2006). Monterrey Instititue of Technology, Marketing and Business Working Paper No. 11/2006 , Available at SSRN: https://ssrn.com/abstract=942651 or http://dx.doi.org/10.2139/ssrn.942651

Dr. Rajagopal (Contact Author)

EGADE Business School, Tecnologico de Monterrey (ITESM) - Mexico City Campus ( email )

Carlos Lazo, 100
Santa Fe
Mexico City, DF 01389
Mexico

HOME PAGE: http://prof-rajagopal.com

Metropolitan College, Boston University ( email )

United States

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