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An Empirical Analysis of Latitude of Price Acceptance in Consumer Package Goods


  • Kalyanaram, Gurumurthy
  • Little, John D C


Scanner panel data analyses for sweetened and unsweetened drink categories (with four brands in each) support the presence of a region of price insensitivity around a reference price. The analyses also suggest that consumers with higher average reference price have a wider latitude of price acceptance. Consumers with a higher frequency of purchase (i.e., shorter average interpurchase time interval) are found to have a narrower latitude of price acceptance, because they are more aware of the range of price distributions. Finally, consumers with a higher average brand loyalty have a wider latitude of price acceptance, demonstrating greater tolerance of price fluctuations. Copyright 1994 by the University of Chicago.

Suggested Citation

  • Kalyanaram, Gurumurthy & Little, John D C, 1994. " An Empirical Analysis of Latitude of Price Acceptance in Consumer Package Goods," Journal of Consumer Research, Oxford University Press, vol. 21(3), pages 408-418, December.
  • Handle: RePEc:oup:jconrs:v:21:y:1994:i:3:p:408-18
    DOI: 10.1086/209407

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