EconPapers    
Economics at your fingertips  
 

Choosing high-equity cosmetic brands in bad macroeconomic conditions: evidence from panel data

Joseph Kaswengi (), Mbaye Fall Diallo (), Houcine Akrout and Pierre Valette-Florence ()
Additional contact information
Joseph Kaswengi: VALLOREM - Val de Loire Recherche en Management - UO - Université d'Orléans - UT - Université de Tours
Mbaye Fall Diallo: LSMRC - Lille School of Management Research Center - ULR 4112 - SKEMA Business School - Université de Lille
Houcine Akrout: INSEEC - Institut des hautes études économiques et commerciales | School of Business and Economics
Pierre Valette-Florence: CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes

Post-Print from HAL

Abstract: Purpose This study investigates how price, promotion and consumer characteristics affect consumer choice of high over medium- and low-equity cosmetic brand under different macroeconomic conditions. Design/methodology/approach The study uses purchase records from MarketingScan's Behaviour Scan panels (a GFK – Mediametrie Company) covering the period from 2008 to 2009. The panel analysed represents a sample of 2,149 households representative of the national population. Findings Results indicate that regular price and relative brand price increase high-equity cosmetic brand choice over both low- and medium-equity brands, while reference price decreases it. Brand feature promotion activity and joint promotion positively affect high-equity cosmetic brand choice, whereas display promotion decreases it. In comparison to medium-equity cosmetic brands, gender and education slightly increase high-equity cosmetic brand choice, while age decreases it. Surprisingly, household income does not affect high-equity cosmetic brand choice. The effect of regular price decreases over worsening macroeconomic conditions. However, the effect of relative brand price decreases between low and moderate contraction periods, but increases between moderate and high contraction times. Feature promotion is effective only when the contraction is moderate, while the negative effect of display promotion is stable over time. Originality/value The paper underlines the moderating role of macroeconomic conditions on the relationship between pricing decisions as well as promotion activity and consumer choice of high-equity cosmetic brands.

Date: 2020-04-07
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in International Journal of Retail and Distribution Management, 2020, 48 (4), pp.305-325. ⟨10.1108/IJRDM-01-2019-0003⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02568807

DOI: 10.1108/IJRDM-01-2019-0003

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-09-30
Handle: RePEc:hal:journl:hal-02568807