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Unit Prices (unit + price)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

Production Efficiency and the Pricing of Audit Services,

CONTEMPORARY ACCOUNTING RESEARCH, Issue 1 2003
Nicholas Dopuch
Abstract In this paper, we examine the relative efficiency of audit production by one of the then Big 6 public accounting firms for a sample of 247 geographically dispersed audits of U.S. companies performed in 1989. To test the relative efficiency of audit production, we use both stochastic frontier estimation (SFE) and data envelopment analysis (DEA). A feature of our research is that we also test whether any apparent inefficiencies in production, identified using SFE and DEA, are correlated with audit pricing. That is, do apparent inefficiencies cause the public accounting firm to reduce its unit price (billing rate) per hour of labor utilized on an engagement? With respect to results, we do not find any evidence of relative (within-sample) inefficiencies in the use of partner, manager, senior, or staff labor hours using SFE. This suggests that the SFE model may not be sufficiently powerful to detect inefficiencies, even with our reasonably large sample size. However, we do find apparent inefficiencies using the DEA model. Audits range from about 74 percent to 100 percent relative efficiency in production, while the average audit is produced at about an 88 percent efficiency level, relative to the most efficient audits in the sample. Moreover, the inefficiencies identified using DEA are correlated with the firm's realization rate. That is, average billing rates per hour fall as the amount of inefficiency increases. Our results suggest that there are moderate inefficiencies in the production of many of the subject public accounting firm's audits, and that such inefficiencies are economically costly to the firm. [source]

Relationship between product groups' price perceptions, shopper's basket size, and grocery store's overall store price image

PSYCHOLOGY & MARKETING, Issue 10 2003
Kalpesh Kaushik Desai
This research investigates how consumers form an overall store price image (OSPI) of grocery stores. Whereas prior research on this topic has explored the influence of the number of products offered at lower prices and of the magnitude of such price reduction, this study addresses the following two questions: How do the (lower) prices offered on different types of products influence OSPI? Does such influence vary across consumers, and, if so, how? A general framework of product-price saliency on consumers' OSPI is developed and tested. Specifically, based on two product-related factors,consumption span (length of time required to finish the consumption of a standard unit of the product) and unit price, grocery-store products are classified into four exhaustive and mutually exclusive product groups, and the relationship between OSPI and group-level price perceptions across the four product groups is examined. The framework also examines to what extent this relationship is moderated by consumers' shopping-basket size. Consistent with the proposed framework, this research finds strong empirical evidence of a systematic but differential relationship between OSPI and product group-level price perceptions and also a systematic interaction effect with consumers' basket size. The findings help to identify focal product categories across distinct consumer segments and thus hold important strategic implications for category management and target marketing that are likely to increase the overall effectiveness of retail promotional strategies. © 2003 Wiley Periodicals, Inc. [source]

THE ECONOMIC THEORY OF VERTICAL RESTRAINTS

JOURNAL OF ECONOMIC SURVEYS, Issue 5 2006
Oana Secrieru
Abstract The types of contracts arising in a typical vertical manufacturer,retailer relationship are more sophisticated than a simple uniform price. In addition to setting per unit prices, manufacturers and retailers also revert to non-linear pricing and non-price instruments. These instruments or contracts are referred to as vertical restraints and can take the form of franchise fees, resale-price maintenance, exclusive dealing, exclusive territories and slotting allowances. The use and the effects of one type of instrument versus another depend crucially on specific market assumptions upstream and downstream and on the division of bargaining power between manufacturers and retailers. This paper surveys the industrial organization literature on retail pricing and shows that vertical restraint instruments have important effects on producer and consumer prices, market structure, efficiency and welfare. [source]

Empirical investigation of price setting and quantity surcharges in the German food sector

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 3 2009
Awudu Abdulai
In this study, the authors examined the incidence and determinants of quantity price discounts and quantity price surcharges in the German food sector through a bivariate probit model, using recent consumer scanner survey data. Selectivity bias was corrected for in estimating the magnitude of quantity price surcharges and quantity price discounts, using Heckman's procedure. The findings reveal that almost 10% of the investigated products attract higher unit prices for larger package sizes, although the extent of price surcharges varied among product categories. Quantity price discounts were found to dominate in the firms' pricing strategies. The econometric results showed that the number of package sizes, the average package size, the packaging and storage forms, as well as the price image of a product are all significant determinants of the decision to impose both quantity price surcharges and quantity price discounts. [JEL classification: D40, L11] © 2009 Wiley Periodicals, Inc. [source]

The influence of need for closure and perceived time pressure on search effort for price and promotional information in a grocery shopping context

PSYCHOLOGY & MARKETING, Issue 1 2005
Iris Vermeir
Need for closure (NFC) is introduced as a variable of individual difference that shows promise to help the understanding of a consumers' effort to search for price and promotional information in the context of retail grocery shopping. Results showed that NFC and perceived time pressure (PTP) are important determinants of search effort for price and promotional information (e.g., searching for coupons, looking for in-store promotions, switching stores to find lowest prices, and comparing unit prices). Moreover, an interaction effect was found between NFC and PTP. Future research and theoretical and practical implications are discussed. © 2005 Wiley Periodicals, Inc. [source]

The Real Story of Housing Prices in Australia from 1970 to 2003

THE AUSTRALIAN ECONOMIC REVIEW, Issue 3 2005
Peter Abelson
Despite the popular and public policy interest in housing prices, there have been few reliable published data for housing prices in Australia. In this article we aim to provide an authoritative account of prices for houses and apartments (units) in Australia from 1970 to 2003. Where possible we draw on data from land title offices or on studies that draw on these data, but we also draw on supplementary data in some cases. The first part of the article describes the major data sources of Australian house prices. The main body of the article provides our best estimates of median house and unit prices and real price indices in the capital cities and in the rest of Australia along with explanations for their derivations. We also estimate how improvements in housing quality have influenced real house prices. [source]