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CAA Insurance Company is excited to announce the launch of the CAA Head Start Discount™, a program designed to help young drivers save on their insurance costs. The discount is available to the children or dependents of CAA Insurance auto policyholders in good standing. Effective April 15 for new business and June 15 for renewals, the CAA Head Start Discount offers 25 per cent savings to youth in Ontario under the age of 25 with a clean driving record. This discount is part of CAA Insurance's commitment to innovation and offering the best possible options to its customers. "We are proud to be the first company to bring 25 per cent savings to market for young drivers in good standing," says Matthew Turack, group president CAA Insurance. "This new discount is another way that we can help Ontario families save money." CAA Insurance has always made decisions with the best interests of its customers in mind. When designing programs, products, or initiatives, CAA Insurance makes data-driven decisions by polling both policyholders and the public and by asking ourselves the question, "What would a customer like and benefit from?" This question helps the company stay modern and relevant. "We are confident that continuing to innovate and offer savings and programs that cater to the lifestyles of our customers is a strong business decision," says Turack. "The CAA Head Start Discount gives CAA Insurance the ability to be responsive to the needs of our customers and to ensure that we are there for them in every stage of life." Parents or legal guardians of safe drivers who are CAA Insurance policyholders in Ontario can talk to an agent or broker to see if their children or dependents are eligible for the discount.
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Going green: Solar and wind power remain the best alternatives to fossil fuels
Find video for use here. In the U.S., more and more individuals, and even corporations, are making it a priority to go green in an effort to reduce the nation's dependence on fossil fuels. Studies have proven carbon dioxide is a main contributor to human-caused climate change, so we're tapping into natural elements more often to reduce the use of fossil fuels. From solar farms to solar panels on houses and wind turbines, it’s tough not to find efforts to go green, and that’s a move in the right direction, according to Jessica Reichmuth, PhD, professor in the Department of Biological Sciences in the College of Science and Mathematics at Augusta University. She said we’re heading in the right direction, but more can be done. “We are taking the right steps, but I’m not sure if we will be entirely able to be green energy, but we definitely need to be more green than we are today,” said Reichmuth. “Fossil fuels will eventually run out and are a non-renewable resource.” Homeowners and municipalities are tapping into solar panels most often as a green resource. Some concerns include the costs involved and the fact that in most cases, the panels are permanently attached to a house. Reichmuth points to California as an example of a state trying to ease that burden. Some people who are moving into rental houses and know they aren’t going to be there for a long period of time can have a company attach removable panels. There are other companies jumping into the business of leasing solar panels as well. Even small panels the size of a binder located in a backyard can make a big difference in producing a noticeable amount of electricity. These are great steps, said Reichmuth, but more progress can still be made. “We are at a point within society with green technology that we know and understand how to make solar panels, the infrastructure is there to support them, we just need a movement to get them so they’re used everywhere,” Reichmuth said. Wind turbines remain a big source of discussion. Yes, they provide an alternative electric source, but at what cost? A big negative is the possibility of bird strikes. “Birds will learn to navigate around wind turbines. They are not built in a way that they are impervious to long-distance migration.” Hydroelectricity and geothermal energy are two other green sources of energy. There are not a lot of areas in the U.S. that offer geothermal resources, and as far as hydroelectricity goes, there’s still concern in Reichmuth’s eyes. “I think it would be great to see if dams are going to be used for hydroelectricity, but not as a water containment system. There are portions of the U.S., especially in the southwest, that are dealing with water issues because we have dammed them. Hydroelectricity is good if the dam is used specifically for that purpose and not water containment.” Renewable energy, cost savings and ESG are top of mind for corporations, governments and populations as we look to the future, and if you're a journalist covering this topic, then let us help. Jessica Reichmuth is available to speak with media. Simply click on her icon now to arrange an interview today.
Aston University teams up with eye care provider to reduce NHS patient backlog
Aston University and Eye Docs Ltd enter Knowledge Transfer Partnership to establish new shared-care regimes for eye care patients The new model will help patients access Eye Docs surgeons It will help reduce NHS waiting lists, outpatient clinic backlogs, improve patient care and deliver profits of over £8.8 million Aston University has teamed up with private ophthalmic services clinic, Eye Docs, to undertake a 32-month Knowledge Transfer Partnership (KTP), to help clear NHS surgery waiting-lists and outpatient backlogs. In the West Midlands, average NHS waiting times have increased to over 12 months due to the impact of the Covid-19 pandemic, with waiting list contracts ranging from 100 to 1,500 patients. A cross-disciplinary team from Aston University’s School of Optometry and Aston Business School will work with West Midlands-based company Eye Docs to create a ‘shared-care’ model as part of the KTP. A KTP is a three-way collaboration between a business, an academic partner and a highly qualified researcher, known as a KTP associate. The working model will encompass clinical optometry and management science expertise to identify which patient appointments could be undertaken in community practices and which need to be seen by Eye Docs surgeons. It is hoped this way of working will also help reduce pressure on the NHS - creating a more efficient and cost-effective model that will benefit all stakeholders from patients to clinicians. The Aston University team will be led by Professor Shehzad Naroo, professor of optometry, who brings expertise in leading multidisciplinary groups and managing projects that improve eye care service delivery. Professor Naroo has a long history of working with private clinics to improve delivery of eye care, increasing efficiency and widening the role of private clinics to support the NHS. He will be supported by Professor Prasanta Dey, professor in operations and information management, whose research interests are in project management, service operations management, supply chain management and applications of multi-criteria decision making in industry. Completing the team will be Dr Yang Zhao, senior lecturer in operations and information management, whose research interests are in business model design, digital business models, platform business models, digital innovation, digital healthcare and digitalisation in aging societies. Professor Shehzad Naroo, professor of optometry at Aston University, said: “It is a privilege to be involved in this KTP, which will enable Eye Docs to increase patient numbers to fully utilise theatre capacity by receiving more surgical referrals from local optometrists. “We’re thrilled to be able to help Eye Docs to offer community-based services to patients and help to reduce the burden on the NHS.” Professor Shah, consultant ophthalmic surgeon and co-owner of Eye Docs, said: “This partnership will allow us to adopt the latest research and expertise from a world-leading academic institute to develop new patient pathways and shared-care regimes, enabling us to grow our business and profitability, develop new services and improve patient care. “Working with a multidisciplinary team of clinical and business experts from Aston University will help us to achieve the aims of this project.”
Aston University and asbestos consultancy to use AI to improve social housing maintenance
• Aston University and Thames Laboratories enter 30-month Knowledge Transfer Partnership • Will use machine-learning and AI to create a maintenance prioritisation system • Collaboration will reduce costs, emissions, enhance productivity and improve residents' satisfaction. Aston University is teaming up with asbestos consultancy, Thames Laboratories (TL) to improve efficiency of social housing repairs. There are over 1,600 registered social housing providers in England, managing in excess of 4.4 million homes. Each of these properties requires statutory inspections to check gas, asbestos and water hygiene, in addition to general upkeep. However, there is not currently a scheduling system available that offers integration between key maintenance and safety contractors, resulting in additional site visits and increased travel costs and re-work. Aston University computer scientists will use machine-learning and AI to create a maintenance prioritisation system that will centralise job requests and automatically allocate them to the relevant contractors. The collaboration is through a Knowledge Transfer Partnership (KTP) - a collaboration between a business, an academic partner and a highly-qualified researcher, known as a KTP associate. This partnership builds on the outcomes of TL’s first collaboration with Aston University, by expanding the system developed for the company’s in-house use - which directs its field staff to jobs. The project team will improve the system developed during the current KTP to enable it to interact with client and contractor systems, by combining an input data processing unit, enhanced optimisation algorithms, customer enhancements and third-party add-ons into a single dynamic system. The Aston University team will be led by Aniko Ekart, professor of artificial intelligence. She said: “It is a privilege to be involved in the creation of this system, which will select the best contractor for each job based on their skill set, availability and location and be reactive to changing priorities of jobs." TL, based in Fenstanton, just outside Cambridge, provides asbestos consultancy, project management and training to businesses, local authorities, social housing and education facilities, using a fleet of mobile engineers across the UK. John Richards, managing director at Thames Laboratories, said: “This partnership will allow us to adopt the latest research and expertise from a world-leading academic institute to develop an original solution to improving the efficiency of social housing repairs, maintenance and improvements to better meet the needs of social housing residents.” Professor Ekart will be joined by Dr Alina Patelli as academic supervisor. Dr Patelli brings experience of software development in the commercial sector as well as expertise in applying optimisation techniques with focus on urban systems. She said: “This is a great opportunity to enhance state-of-the-art optimisation and machine learning in order to fit the needs of the commercial sector and deliver meaningful impact to Thames Laboratories.”
Professor James Wolffsohn and Dr Sònia Travé Huarte in collaboration with NuVision won the Medilink Business Award 2023 for a Partnership between Academia and Business The optometry researchers were recognised with an award for their partnership with a company that develops treatments for ocular diseases The collaboration has directly benefitted patients and enhanced global research knowledge. Researchers in the School of Optometry and Vision Sciences at Aston University have been recognised with an award for their partnership work with NuVision, a company that develops treatments for ocular diseases Professor James Wolffsohn and Dr Sònia Travé Huarte recieved the Medilink Business Award 2023 for a Partnership between Academia and Business at a prestigious ceremony held on 16 March in the Great Hall at the University of Birmingham. Professor Wolffsohn, who is also the head of the School of Optometry at Aston University, said: “We are delighted to have won this Medilink award in partnership with NuVision. This collaboration has directly benefitted our patients with this common chronic, debilitating disease, has enhanced global research knowledge in dry eye management and enhanced the local economy. The team at NuVision are exceptional and it is a pleasure to continue to innovate with them.” NuVision has an expert team of scientific, clinical and industry professionals dedicated to building innovative ocular biotherapies. It was founded in 2015 based on 15 years of translational research at the University of Nottingham. The company develops ocular biotherapies through research and innovation. The Medilink Midlands Business Awards 2023 are sponsored by the University of Birmingham and the Precision Health Technologies Accelerator Ltd. The awards event saw 13 life science companies based in the East and West Midlands receive awards from Start-Up to Outstanding Achievement. A further six companies received Highly Commended certificates. For more information about the School of Optometry and the Vision Sciences Research Group please visit our website.
Cyber threats have become one of the leading issues for corporations, governments, and public institutions across America. With ransomware attacks, hackers, and other nefarious threats, the issue is becoming a daily occurrence and leading news story. Rensselaer Polytechnic Institute’s James Hendler, director of the Future of Computing Institute, Tetherless World Professor of Computer, Web, and Cognitive Sciences, and director of the RPI-IBM Artificial Intelligence Research Collaboration, weighs in on what we should all know about cybersecurity. Overview Think about cybersecurity the way you think about home security – the more valuables you have, the more security you need. A normal user needs the equivalent of a lock on the door, which most of our computers provide out of the box. However, a user with a fair amount of personal information, who keeps financial records or runs a small business, probably wants a firewall or other additional protection. We used to tell people to protect their computers with firewalls, malware detectors, and the like, but now it is much more important to protect your web access, be wary of external sites, and keep your passwords secure and not easily guessed. Use of a password manager program can be really helpful for people who use a lot of different accounts. Threats The biggest threat facing individuals is identity theft caused by someone getting into an account that you don’t control. Most malware or password stealing comes via a phishing attack (a fake email that convinces you to click a bad link), so if you see an offer that looks too good to be true, don’t believe it. Never give out a password or personal information without confirming that it is legitimate. We also recommend not using major accounts (like Google, Facebook, etc.) to log in to new apps where you aren’t completely sure of the reliability – you’re safer if you use a separate password. It’s also worth noting that these kinds of attacks are now happening on cell phones – if you get a text saying your Amazon, Netflix, or other services have been shut off, be very careful. These companies almost never send out such messages, and if they do, they come via email, not text. For businesses, ransomware is becoming an increasing challenge. Frequent backups and dual authentication are absolute musts for small businesses. Large businesses, and especially those with cyber-physical connections such as a manufacturing device, must have someone on the team who understands internet technology. Outside audits done annually, at least, are also highly recommended. The biggest danger in cybersecurity is that people, especially in businesses, think that the software industry will fix things and that they don’t have to worry. That’s like expecting auto manufacturers to stop car theft, or the government to prevent all crime – these organizations certainly need to help, but they cannot be perfect. So while there definitely needs to be a role for manufacturers and government, people need to understand that the threats are now coming from social interactions such as phishing, or serious criminal enterprises such as ransomware attackers, and not just maladjusted teenagers. They must be ready to pay for some security if they have things on their network that need protection. The Cloud Cloud-based services are a major boon to cybersecurity for individuals and small businesses if, and only if, people protect their access. If a breach is reported to you by a company, don’t ignore it, change your password, and, whenever possible, use dual authentication. The cloud companies can afford to spend more on security than you can and thus your information stored in these services tends to be quite secure. However, people need to be careful in using the cloud. Just as you may trust a bank with your money, you want to be sure not to be robbed on your way there. Future Computing Systems and Cybersecurity New technologies, such as artificial intelligence (AI), are arising all the time in today’s fast-moving cyber world. As these technologies arise, they can create new opportunities for cybersecurity, but can also create new challenges. Cybercrime will never disappear, and each new capability comes with a price. Increased education and awareness of emerging computing technologies (blockchain, quantum, etc.) are important not just for the expert, but also for the general public. It is important to stay informed and pay attention to what is being reported. Just as buying a new appliance can be a great advantage at home (I love my new air-fryer), you also have to be sure to be using it appropriately (used wrong, it can cause fires). Looking to learn more or connect with an expert for your questions and coverage? James Hendler is the director of the Rensselaer Future of Computing Institute, Tetherless World Professor of Computer, Web, and Cognitive Sciences, and director of the RPI-IBM Artificial Intelligence Research Collaboration. Hendler has authored over 400 books, technical papers, and articles in the areas of Semantic Web, artificial intelligence, cybersecurity, and high-performance processing. Hendler is available to speak with media - simply click on his icon now to arrange an interview today.
Is America's banking system in trouble once again?
Nerves are rattled and many are worried as the markets opened Monday to news of another US bank collapse, making that two large banks shuttered in less than a week. It's news that's rocking the financial world on a massive scale. Federal regulators announced on Sunday that another bank had been closed and that the government would ensure that all depositors of Silicon Valley Bank — which failed Friday — would be paid back in full as Washington rushed to keep fallout from the collapse of the large institution from sweeping through the financial system. The Federal Reserve, Treasury and Federal Deposit Insurance Corporation announced in a joint statement that “depositors will have access to all of their money starting Monday, March 13.” In an attempt to assuage concerns about who would bear the costs, the agencies said that “no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.” March 12 - New York Times With an economy already on edge as Americans feel the grip of inflation and worries of recession - this is frightening news and media are scrambling for answers. What is causing the closures of these big banks and how many more will follow? How much money is lost and how much has been protected? Is this 2008 all over again? Is the federal government doing enough to stop the damage from spreading? What measures need to be put in place by government to assure citizens that their savings, retirement plans and mortgages aren't at risk? And will anyone be held accountable for the billions already lost? There's a lot to explain - and that's where our experts can help. Rebel Cole, Ph.D., a Lynn Eminent Scholar Chaired Professor of Finance, has expertise in global financial institutions, commercial banking and small business finance. He spent 10 years working in the Federal Reserve System and has experience at the the International Monetary Fund and the World Bank. Cole has been interviewed by numerous national media outlets, such as The Wall Street Journal, The New York Times, The Washington Post and Fox Business. Rebel is available to speak to media regarding the current state of banking and what Americans need to watch for or worry about. Simply click on his icon now to arrange an interview today.
How Colorism Impacts Professional Achievement
Melissa J. Williams is associate professor of organization and management at Emory University’s Goizueta Business School. She investigates what happens when social identities collide with workplace hierarchies, and the consequences of putting people in positions of power and leadership. Here she looks at something less documented: the extent to which our appearance is stereotypically Black or white. And what that means for our prospects. Rosa Parks made history on December 1, 1955, when she refused to relinquish her bus seat to a white passenger. Her simple gesture of defiance ignited a city-wide bus boycott in Montgomery, Alabama, and has gone down in the annals as a pivotal moment for the social justice movement in the United States. However, Parks was not the only African American to make a stand against racial segregation. Nor was she the first. In March of the same year in the same city, 15-year-old Claudette Colvin also refused to give up her seat to a white woman on a Montgomery bus. So why isn’t she a household name? In part, Colvin’s age was a factor. The National Association for the Advancement of Colored People and other Black civil rights groups got behind Parks, reasoning that an older woman would be better equipped to withstand the controversy. But as Colvin herself stated, there were other factors at play. There was something about Parks’ appearance that gave her more leverage, reasons Colvin explained in Philip Hoose’s award-winning book on the civil rights movement. She had the “right hair and the right look.” Not only that, but her appearance “was the kind that people associate with the middle class. She fit that profile.” Success isn’t black or white. It’s shades of…white. Colorism has long been documented in the U.S. and elsewhere. Discrimination against human beings on the basis of their facial features, hair, and skin color transcends race—it is prevalent even within groups that share the same ethnic identity, where lighter skin tones are perceived to be more valuable than dark. Research over the years has shed light on the nefarious effects of colorism or shadeism in terms of equity and access to opportunity. But a new landmark study by Associate Professor of Organization & Management Melissa Williams, and Goizueta colleagues, PhD student Tosen Nwadei and Roberto C. Goizueta Chair of Organization & Management Anand Swaminathan, looks at just how Black or white someone appears—and how this shapes the way others see their potential; as well as the kinds of professional outcomes they can expect. What Williams and her co-authors, who also include James B. Wade from George Washington University and C. Keith Harrison and Scott Bukstein of University of Central Florida, find in their studies, is that Black professionals are less likely to be promoted to leadership roles. What’s more, for Black professionals whose physical appearance is more Black-stereotypical, their chances drop from 12 percent to a mere seven percent. For white professionals, on the other hand, having a more white-stereotypical appearance is an advantage for leadership – looking more stereotypical as a white person increased their chances of holding a leadership role from 32 percent to 43 percent. Williams and colleagues ran both an archival study and a lab experiment with volunteers to discover the extent to which degrees of ethnicity in appearance influence perceptions of a person’s potential for leadership and actually predict their likelihood of success in an industry. While the science unequivocally shows that white people enjoy advantages over Black people in opportunity and outcome across the board, Williams et al. were also interested in exploring what she calls the “continuum of race:” the more nuanced racial characteristics and differences that shape how the world sees us. There’s an assumption that everyone within the same ethnic group—Black or white—will experience the same degree of bias and prejudice, or acceptance and success. And we wanted to push back on that idea to really explore how degrees of whiteness or Blackness play out in people’s minds and shape how they read you physically. -Associate Professor of Organization & Management Melissa Williams Previous research shows the link between persisting in STEM-based majors in college and how much students are perceived to look “like their race,” she says. Those who are perceived to look less typically Black tend to make more friends outside their ethnic group—a boundary-crossing behavior that can help drive careers. To test these ideas, Williams and co-authors ran two studies. First, they accessed publicly available data including photographs, professional background, and positions from one large industry within the U.S.: American college football. College football is really rich in data. You can access job titles, photos, leadership, and non-leadership roles; and you can separate individuals out into head coaches and position coaches who have overseeing roles but who are not leaders per se. Separately, Williams et al. recruited a group of volunteers to look at the images of the football coaches: a mix of Black and white head and position coaches. These volunteers were asked to rate how typical they perceived each individual’s appearance to be of European or white Americans, or of Black Americans, ascribing each person a score out of five based on features such as their skin color, hair, eyes, nose, cheeks, and lips. These scores were then regressed—or cross-referenced—with the position held by the individuals in the photos to determine the relationship between their racial stereotypicality and their leadership role. Crunching the numbers, Williams found a direct correlation between the degree of perceived whiteness or Blackness of the coaches and how likely they actually were to be successful leaders. “We do find a kind of consensus in people’s view of what it means to be Black or white straight off,” says Williams. “So we do all seem to agree on the physical attributes of race. But it gets really interesting when you regress the scores that these photos get and compare them with the actual jobs these guys hold.” What we see is that, controlling for their age, attractiveness, and professional experience, the white guys who look less stereotypically white are 32 percent likely to occupy leadership roles. This rises to 43 percent with the men who look more like a stereotypical white guy. For Black professionals, the inverse is true, she notes. The more typically Black an individual looks, the less probability there is that he occupies a leadership job. Specifically, that figure drops from 12 to seven percent. So benchmark leadership probability is not only already lower for Black individuals, but drops even further when people are deemed to look “more typically Black,” says Williams. A follow-up experiment invited volunteer football fans to compare how they saw the potential future success of two same-race college football players—one more stereotypical in appearance than the other. The results confirm what Williams et al. suspect: 70 percent of the time, participants chose the more-typical white individual over the less-typical white individual as having greater leadership potential. In other words, the more white a white person looks, the more they are seen as leadership material. These findings should translate into an imperative, says Williams; and that is to think more broadly about race and how it impacts life outcomes. Because race is not a uniform experience, she says. “Organizations might want to look beyond just ticking the box when it comes to diversity and inclusion, and give deeper thought to who they want to recruit, support and push forward in representation. For white people, paying attention to whiteness—the types of white people who enjoy advantages in leadership—can be useful in reframing certain questions. A good place to start might be for leaders to ask: do I want to support people who look like me? Because the face you choose can ultimately help disrupt, or reinforce, the stereotype.” Interested in learning more or connecting with Melissa J. Williams, associate professor of organization and management at Emory University’s Goizueta Business School? She's available to speak about this subject - Simply click on her icon now to arrange an interview today.
Public lecture: how can we have a good future with artificial intelligence?
Public lecture: how can we have a good future with artificial intelligence?AI expert and educator Professor Anikó Ekárt to discuss one of today’s most provocative topics Lecture will take place on 28 February at Aston University Talk to explore artificial intelligence’s capabilities, benefits and pitfalls. The potential impact of artificial intelligence (AI) on our daily lives will be explored in a public lecture at Aston University. The University is inviting the public onto its campus on Tuesday 28 February to hear Professor Anikó Ekárt discuss one of today’s most provocative topics. Research into AI began in the1950s and since then it has played an increasing role in daily lives, such as chatbots and digital assistants. As an AI researcher and educator, Professor Ekárt will take a pragmatic view of the technology, arguing that society will benefit from it – but only if it is used responsibly. She said: “Digital assistants based on speech recognition are now broadly accepted and successfully embedded in many business services. “However, the most recent release of a chatbot with amazing writing capabilities has divided the world; some are relieved that their job may now become substantially easier, but others have questioned the impact of this on education. “In the lecture, I’ll suggest three key directions; responsible use of AI, exploring many AI techniques rather than focusing on just one, and educating the public about AI’s capabilities, benefits and pitfalls.” She will illustrate the success and further potential of less well-known AI techniques, such as evolutionary computation, genetic programming and symbolic regression, based on her 25 years of research. Anikó who is a professor of artificial intelligence, joined Aston University in 2006 as a lecturer. She leads the artificial intelligence research theme within the School of Informatics and Digital Engineering. Her research interests are centred around AI methods and their application, focusing on evolutionary algorithms and genetic programming. She has successfully contributed to applications of AI techniques to health, engineering, transport, and art. In 2022 she was the winner of the Evo* Award for Outstanding Contribution to Evolutionary Computation in Europe. The free event will be taking place on 28 February from 6 pm to 8 pm and will be followed by a drinks reception. To sign up for a place visit https://www.eventbrite.co.uk/e/an-inaugural-lecture-by-professor-aniko-ekart-tickets-516518760517
#Expert Insight: Price Image Formation: When is HILO low?
When consumers choose where to shop, they often consider a store’s price image —does the store have a reputation for having lower or higher prices than its competitors? A store’s reputation for lower prices doesn’t happen by chance. Choosing a pricing strategy is one of the biggest pricing decisions a retailer makes. In “When is HILO Low? Price Image Formation Based on Frequency versus Depth Pricing Strategies,” a recently published paper in the Journal of Consumer Research, co-authors Ryan Hamilton, associate professor of marketing, Ramnath Chellappa, associate dean and Goizueta term professor of information systems and operations management, and Daniel Sheehan, associate professor of marketing and supply chain at the University of Kentucky’s Gatton College of Business and Economics, explore a gap in existing pricing strategy research. “Our research doesn’t threaten the validity of the previous research,” said Hamilton, “but what it does do is point to the limited generalizability of the previous research.” This is because previous pricing strategy research used the same research paradigm: It emphasized consumers’ perspectives as they compared prices simultaneously across multiple stores. Hamilton, Chellappa, and Sheehan wondered what would happen if they studied consumers as they compared prices of products within a store, instead of across stores. When they did so, the authors found that “many of the prominent findings of previous research are reversed,” they wrote. “We propose that when stores’ prices are evaluated one at a time, or in isolation, consumers will rely on the most salient contextual clues available—within-category price information—when forming a price image.” For example, rather than research the price of peanut butter across multiple grocery stores, shoppers often evaluate the price of peanut butter by comparing the prices of the brands on the shelf in front of them. To illustrate their point, the authors explore two basic pricing strategies: a frequency pricing strategy and a depth pricing strategy. Every Day Low Pricing (EDLP) is a frequency strategy where stores offer small price advantages over their competitors on many items. Walmart employs an EDLP strategy. A common depth strategy is a high-low (HILO) pricing strategy. HILO offers infrequent, but deep, price advantages over competitors. Macy’s utilizes this strategy. “The conventional wisdom is that EDLP equals low price,” explained Hamilton. But he and his co-authors argue that in a non-theoretical environment, the effectiveness of EDLP strategies is less clear. The trio hypothesized that the context in which consumers encounter prices has important implications. Specifically, that the frequency advantage of EDLP identified in earlier research was limited to those scenarios where customers were able to simultaneously compare prices across multiple stores. In contrast, they argue that a depth advantage, one resulting from HILO pricing, will be more likely when consumers evaluate store prices separately. “Without simultaneous comparisons across stores, consumers shift from using across-store prices as reference points to using within-category reference prices. As a result of this shift, deep price advantages are easier to evaluate than frequent price advantages and therefore more influential on customers’ formation of price image,” they write. “Because our theoretical account is based on within-category external reference prices, we predict that a depth store is likely to be evaluated as having a lower price image than a frequency store even when consumers are exposed to the prices of just one store,” they write. The authors tested their hypothesis using six separate experiments. All but one of the experiments studied national brands commonly found in grocery stores. (The other experiment used televisions.) In the experiments where participants saw store prices simultaneously, the experiment replicated the frequency advantage noted in previous research. But when participants did not have simultaneous price information across stores, the previous findings didn’t hold “What we found is that if you distance those prices comparisons even a little bit -showing a price on one webpage and then seeing a price on another webpage - that’s enough to completely reverse the findings,” explained Hamilton. In an isolated setting, “a couple of really low prices” will better communicate a store’s low-price image, said Hamilton. “That’s the big story.” While excited about the findings of their research, Hamilton is quick to point out the limits of their hypothesis, such as when pricing information isn’t readily available or when the consumer isn’t familiar with the brands of the product they wish to buy. “People want a simple answer that works everywhere, but it’s more nuanced than that,” said Hamilton. “This [hypothesis] is going to work better under certain set of circumstances than others because people process price information differently.” The insights aren’t only useful for retailers. While using a store’s price image to shop can be efficient from a consumer standpoint, assuming that the prices are low solely because the store has a reputation for low prices isn’t always the case. A retailer’s price image has vulnerabilities. Not everything at Costco is cheaper than it is at Whole Foods. Southwest Airlines may not always be cheaper than Delta Air Lines. “If you’re shopping for things you really care about,” advised Hamilton, “it might be worth doing more across-store price comparisons.” Chellappa is excited about how the paper addresses gaps in traditional economic models of pricing. “While much research in economics and information systems focuses on the availability of information for price comparison, the cognitive aspect of ‘how’ consumers compare and process such information is only explicated by studies such as ours. Looking at pricing through a behavioral lens, capturing consumers’ real shopping behavior reveals great insights that will be useful for firms,” he said. Interested in learning more about consumer behavior and Price Image Formation Based on Frequency versus Depth Pricing Strategies? Then let us help with your coverage and questions. Ryan Hamilton and Ramnath Chellappa are both available to speak regarding this important topic - simply click on either expert's icon now to arrange an interview today.
