nep-mkt New Economics Papers
on Marketing
Issue of 2005‒10‒04
three papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior

  1. Why Count Advertising Rivals? Competition and Consumer Advertising in Specialized Markets By Amrita Bhattacharyya
  2. What Can the United States Learn from Spain’s Pork Sector? Implications from a Comparative Economic Analysis By Lence, Sergio H.

  1. By: Amrita Bhattacharyya (Boston College)
    Abstract: This paper analyzes what incentives firms have to advertise to consumers when consumption decisions are made by market experts. The study explains why only some, but not all firms choose to advertise to consumers in specialized markets with experts. The theoretical analysis finds that the observed across-class and within-class variation in consumer advertising by U.S. pharmaceuticals is due to differences in disease-familiarity and heterogeneity in patients' types. Finally, a simple game-theoretic model shows that when only some, but not all competitors in a market advertise to consumers, the crucial determinant of advertising is the number of advertising competitors. With increased competition from advertising rivals, each firm's consumer advertising decreases. Using annual, brand-level direct-to-consumer-advertising expenditure data for brand-name prescription drugs belonging to 5 therapeutic classes over the period 1996-1999, empirical study offers support for the negative relationship between consumer advertising expenditure and number of advertising rivals.
    Keywords: Advertising, Competition, Pharmaceutical, Expert, Nash equilibrium
    JEL: L0 M3 I0
    Date: 2005–09–29
  2. By: Lence, Sergio H.
    Abstract: This study provides a comparative economic analysis of the primary production of pork and its marketing channel in Spain and the United States. The focus on Spain is due to the profound growth and transformation of its pork sector over the last 20 years, compared with other major players in the world market for pig meat. The analysis reveals a number of similar characteristics but also important differences between the two countries. The significant expansion of Spain’s pork production sector stemmed from a number of factors that apply, to a relatively large extent, to some U.S. states (in particular, North Carolina) but do not apply to the U.S. pork production sector as a whole. This implies that it is unlikely that the U.S. pork production sector as a whole will mimic an expansion driven by the same type of factors in the future. Likewise, it seems highly unlikely that the U.S. consumption of pig meat will expand in the future based on the same driving forces behind the sharp increase in Spain’s domestic demand for pig meat over the last 20 years. The analysis also indicates that Spanish pig producers are currently being subjected to more stringent environmental and animal welfare regulations than their U.S. counterparts and that these regulations are becoming increasingly more restrictive. It would not be surprising to see similar trends emerging in the United States, leading to a substantially more restrictive regulatory environment for U.S. hog producers.
    Keywords: comparative analysis, hog marketing channel, Spain pork industry, U.S. pork industry.
    Date: 2005–09–27
  3. By: Joao Leitao (Universidade da Beira Interior); Ricardo Gouveia Rodrigues (Universidade da Beira Interior); Paulo Duarte (Universidade da Beira Interior)
    Abstract: An abrupt growth, in terms of the supply of marketing degrees in Portugal, has, recently, been observed, which has contributed for intensifying the concurrence between the institutions of undergraduate education. In this new competitive environment the development of a brand image associated with this kind of supply, is intended as a strategic variable for communicating with different targets. In this article, the different types of factors that contribute for the creation of the brand image of the institutions of undergraduate education, are presented, by highlighting the importance of the advertising push, for obtaining the desirable demand pull, which can be associated with the basic supply of undergraduate education, and with others upper educational degrees that are supplied by the same education institutions.
    Keywords: Advertising, Brand Image, Undergraduate Education.
    JEL: I21 M31 M37
    Date: 2005–09–26

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