Using Natural Language Analysis of Product Reviews to Detect Features Contributing to Life Cycle Price Decline

• Autorzy: Takayuki Suzuki , Kiminori Gemba
• Języki publikacji: EN

Abstrakty

EN

As product life cycles become shorter, rates of price decline are accelerating. This study examined online reviews and used natural language processing and multiple regression analyses to identify the determinants that influence the rate of price decline in digital cameras. The coefficients for the external factors of portability, lens, and video were significantly positive, and the coefficients for battery, hold feel, underwater, and correction were significantly negative. Our proposed methodology can be employed for differentiation and product development strategies. Design, which has attracted attention in recent years in the context of value creation, did not affect the rate of price decline, suggesting that a full-scale re-examination of differentiation and product development strategies is imperative. This approach can be applied to product and marketing strategies. (original abstract)

Słowa kluczowe

EN

Natural languages; Product strategy; Quantitative analysis; Product life cycle; Product price

PL

Języki naturalne; Strategia produktu; Analiza ilościowa; Cykl życia produktu; Cena produktu

• Czasopismo: Forum Scientiae Oeconomia
• Rocznik: 2022
• Tom: 10
• Numer: nr 1
• Strony: 67--80

Twórcy

autor

Takayuki Suzuki

• Ritsumeikan University, Japan

autor

Kiminori Gemba

• Hosei University, Japan

Bibliografia

• Aalto-Setälä, V., Halonen, M. (2004), Attractive prices in grocery and automobile markets - why is such pricing used?, Journal of Retailing and Consumer Services, 11 (5), 299-306. https://doi.org/10.1016/j.jretconser.2003.10.001
• Ahmad, W., Ahmed, T., Ahmad, B. (2019), Pricing of mobile phone attributes at the retail level in a developing country: Hedonic analysis, Telecommunications Policy, 43(4), 299-309. https://doi.org/10.1016/j.telpol.2018.10.002
• Bass, F. (1969), A new product growth for mod-el consumer durables, Management Science, 15(5), 215-227. https://doi.org/10.1287/mnsc.15.5.215
• Bambauer-Sachse, S., Grewal, D. (2011), Temporal reframing of prices: when is it beneficial?, Journal of Retailing, 87(2),156-165. https://doi.org/10.1016/j.jretai.2011.02.002
• Chen, B., Chen, J. (2017), Compete in price or service? - A study of personalized pricing and money-back guarantees, Journal of Retailing, 93(2), 154-171. https://doi.org/10.1016/j.jre-tai.2016.12.005
• Chung, W., Talluri, S., Narasimhan, R. (2015), Optimal pricing and inventory strategies with multiple price markdowns over time, European Journal of Operational Research, 243(1), https://doi.org/10.1016/j.ejor.2014.11.020
• Deltas, G., Zacharias, E. (2006), Entry order and pricing over the product cycle: the transition from the486 to the Pentium pro-cessor, International Journal of Industrial Organization, 24, 1041-1069. https://doi.org/10.1016/j.ijindorg.2006.01.001
• Eisenman, M. (2013), Understanding aesthet-ic innovation in the context of technological evolution, Academy of Management Review, 38(3), 332-351. https://doi.org/10.5465/amr.2011.0262
• Galarraga, I., Del Valle, D. H., González-Eguino, M. (2011), Price premium for high-efficiency refrigerators and calculation of price-elasticities for close-substitutes: Combining hedonic pricing and demand systems, Journal of Cleaner Production, 19(17-18), 2075-2081. https://doi.org/10.1016/j.jclepro.2011.06.025
• Gorodnichenko, Y., Sheremirov, V., Talavera, O. (2018), Price Setting in Online Markets: Does IT Click?, Journal of the European Economic Association, 16(6), 1764-1811. https://doi.org/10.1093/jeea/jvx050
• Gorodnichenko, Y., Talavera, O., Vu, N. (2021), Quality and price setting of high-tech goods, Economic Modelling, 98, 69-85. https://doi.org/10.3386/w28390
• Haynes, M., Thompson, S. (2008), Price, price dispersion and number of sellers at a low entry cost shopbot, International Journal of Industrial Organization, 26(2), 459-472. https://doi.org/10.1016/j.ijindorg.2007.02.003
• Hidano, N. (1997), Kankyo to syakaishihon no keizaihyouka. Tokyo: Keisou (original work published in Japanese).
• Kalyanaram, G., Winer, R. S. (1995), Empirical Generalizations from Reference Price Research, Marketing Science, 14(3), 161-69. https://doi.org/10.1287/mksc.14.3.G161
• Kleinsasser, S., Wagner, U. (2011), Price endings and tourism consumers' price perceptions, Journal of Retailing and Consumer Services, 18(1), 58-63. https://doi.org/10.1016/J.JRETCONSER.2010.09.011
• Kotler, P., Armstrong, G. (2011), Principles of Marketing (14th edition), Upper Saddle River, NJ: Prentice Hall.
• Kotler, P, Keller, K L. (2015), Marketing Management (15th edition), London: Pearson.
• Kumagai, K., Nagasawa, S. (2019), Psychological switching mechanism of consumers' luxury and non-luxury brand attitude formation: The effect of store location prestige and self-congruity, Heliyon (Business and Economics), 5(5) e-01581. https://doi.org/10.1016/j.heliyon.2019.e01581
• Levy, D., Lee, D., Chen, H., Kauffman, R., Bergen, M. (2011), Price points and price rigidity, The Review of Economics and Statistics, 93(4), 1417-1431. https://doi.org/10.1162/REST_a_00178
• Lewis, M, S. (2015), Odd prices at retail gasoline stations: Focal point pricing and tacit collusion, Journal of Economics and Management Strategy, 24(3), 664-685. https://doi.org/10.1111/jems.12103
• Macé, S. (2012), The impact and determinants of nine-ending pricing in grocery retailing, Journal of Retailing, 88(1), 115-130. https://doi.org/10.1016/j.jretai.2011.07.00
• Mahajan, V., Muller, E., Srivastava, R. K. (1990), Determination of adopter categories by using innovation diffusion models, Journal of Marketing Research, 27(1), 37-50. https://doi.org/10.1177/002224379002700104
• Manning K. C., Sprott D. E. (2009), Price endings, left-digit effects, and choice, Journal of Consumer Research, 36(2), 328-335. https://doi.org/10.1086/597215
• McGrath E M. (2000), Product strategy for high-technology companies, New York: McGraw-Hill.
• Okumura, M. (2010), Introduction to Natural Language Processing, Corona publishing co., LTD. Tokyo (original work published in Japanese).
• Ogura, T., Tsuda, K. (2018), Method of extracting appliance pricing factors in e-commerce, Procedia Computer Science, 126, 1476-1483. 10.1016/j.procs.2018.08.122
• Rodrigues, A. P., Chiplunkar, N. N. (2016), Mining online product reviews and extracting product features using unsupervised method, 2016 IEEE Annual India Conference (INDICON), 1-6. https://doi.org/10.1109/INDICON.2016.7839054
• Schindler, R. M.(2006), The 99 price ending as a signal of a low-price appeal, Journal of Retailing, 82(1), 71-77. https://doi.org/10.1016/j.jre-tai.2005.11.001
• Simon, H. (2015), Confessions of the pricing man: How price affects everything (English edition), adapted from Original German Language Edition Preisheiten: Alles, was Sie über Preise wissen müssen, Heidelberg: Campus International Publishing.
• Suzuki, S., Gemba, K., Aoyama, A. (2019), Changes in product value contributing to customer sat-isfaction: The case of the digital camera, Forum Scientiae Oeconomia, 7(4), 41-51. https://doi.org/10.23762/FSO_VOL7_NO4_3
• Yamada, M., Furukawa, R. (1996), Shinseihin hukyuu no patann no bunnrui, Japan Institute of Marketing Science, 4(1-2), 16-36. (original work published in Japanese).
• Zhang, J., Chiang, Wei-yu, K. (2020 a), Durable goods pricing with reference price effects, Omega, 91, 1-12. https://doi.org/10.1016/j.omega.2018.12.007
• Zhang, Y., Wenwen, T. (2020 b), Will energy efficiency affect appliance price? An empirical analysis of refrigerators in China based on hedonic price model, Energy Policy, 147, 1-7. https://doi.org/10.1016/j.enpol.2020.111818

Identyfikatory

DOI

10.23762/FSO_VOL10_NO1_4