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The Filipino “tingui” retailing approach and cigarette price increase

The Filipino “tingui” retailing approach and cigarette price increase The practice of selling cigarettes by sticks is a phenomenon that can be observed among Asian countries. It is prevalent in urban centers where the retailing activity is one of the major economic activities undertaken by the middle and lower echelons of the social class. In a study of the switching of consumers from one brand to the other as a response to price increases, the practice has shown a bi‐directional effect. In an inter‐brand shift, it acts as a buffer slowing down the change in preference by granting the consumers an ability to buy the same brand even if the budget is not enough for one pack. The opposite, however, happens in the intra‐brand (local to foreign) shift. The practice makes it easier for the consumer to shift by lowering the perceived “sacrifice” in incremental price vis‐à‐vis the differential value between the imported and local brand. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Pricing Strategy and Practice Emerald Publishing

The Filipino “tingui” retailing approach and cigarette price increase

Kuang‐Jung Chen
Pricing Strategy and Practice , Volume 5 (4): 8 – Dec 1, 1997
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Publisher
Emerald Publishing
Copyright
Copyright © 1997 MCB UP Ltd. All rights reserved.
ISSN
0968-4905
DOI
10.1108/09684909710184644
Publisher site
See Article on Publisher Site

Abstract

The practice of selling cigarettes by sticks is a phenomenon that can be observed among Asian countries. It is prevalent in urban centers where the retailing activity is one of the major economic activities undertaken by the middle and lower echelons of the social class. In a study of the switching of consumers from one brand to the other as a response to price increases, the practice has shown a bi‐directional effect. In an inter‐brand shift, it acts as a buffer slowing down the change in preference by granting the consumers an ability to buy the same brand even if the budget is not enough for one pack. The opposite, however, happens in the intra‐brand (local to foreign) shift. The practice makes it easier for the consumer to shift by lowering the perceived “sacrifice” in incremental price vis‐à‐vis the differential value between the imported and local brand.

Journal

Pricing Strategy and Practice – Emerald Publishing

Published: Dec 1, 1997

Keywords: Distribution; Pricing policy; Retailing; Confectioners; "Confectioners, tobacconists and newsagents"

References

  • Some case histories of econometric modeling in marketing: what really happened?
    Bass, F.M.
  • Effects of price and advertising in test market experiments
    Eskin, G.E.; Baron, P.H.
  • Buyer Behavior in Marketing Strategy
    Howard, J.A.
  • Pricing: Making Profitable Decisions
    Monroe, K.B.
  • Contextual influences on subjective price perceptions
    Monroe, K.B.; Della Bitta, A.J.; Downey, S.J.
  • The Strategy and Tactics of Pricing
    Nagle, T.T.; Holden R.K.