Effects of inflation on consumer choice

Yehoshua Liebermann, Meyer Ungar

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

Possible effects of a nonhomogeneous inflation on consumer choice among brands of energy-using durables are considered. For this purpose price differentials among brands are regarded as "investments," while operating costs differentials are viewed as "returns." Using a life cycle-cost approach, it is shown how inflation may affect consumers' critical implicit rates of return and ultimately their brand choice. Empirical observations which support the theoretical results are provided.

Original languageEnglish
Pages (from-to)379-388
Number of pages10
JournalJournal of Business Research
Volume11
Issue number3
DOIs
StatePublished - Sep 1983

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