We are proud to announce that Vinay Kanetkar was awarded “Best Presentation” at the 32nd INFORMS Marketing Science Conference held from June 17th to June 20th in Cologne, Germany. This event brings academics, practitioners and policymakers from around the world together to present, hear and discuss new research in a broad range of marketing science topics. Vinay presented a paper that touched upon the impact of quantity premium consumer buying behavior:
“Literature on quantity premium highlights a general belief amongst consumers that it is cheaper to buy products in larger quantities, despite the frequency and prevalence of quantity premium observed in retail stores. There is limited empirical evidence to explain consumer behaviour in the presence of quantity premium.
This is the first paper that tests quantity premium on consumer choice behaviour. Grocery shoppers (150) were intercepted in a store and asked to make a series of choices about laundry detergents and other products. In each choice, unit price, package size and package price were systematically varied. Analysis of collected responses suggests that consumers realize the incidence of quantity premium. Furthermore, statistical analysis indicates that consumers pay attention to unit prices, package prices and brand to make trade-offs, and are willing to buy detergents on quantity premium.”
