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on Marketing |
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Issue of 2006‒02‒26
twelve papers chosen by Joao Carlos Correia Leitao Universidade da Beira Interior |
| By: | Oburai Prathap; Baker Michael J |
| Abstract: | The marketing discipline is evolving and so is its agenda with the advent of relationship marketing, networks and other related sub-fields. Till recently, business literature focused largely on competition, and cooperation, its counter part, has received insufficient attention. With a view to redress the situation, this research article investigates the phenomenon of strategic marketing alliances, partnerships and networks, and aims to make fundamental theoretical contributions in the sub-field of business-to-business relations and cooperation. Eclectic and wide-ranging enquiry is a main research tool employed and hence the character of this research is interdisciplinary. An extensive literature review of a number of related disciplines is undertaken in order to capture the essence of cooperative strategies and implications for competitive advantage. In this paper, we examine the phenomenon of cooperation and its evolution over time, and highlight the advantages of cooperative strategies in the workplace and in economic organisation. Following an introductory section, we discuss in the second and third sections the evolution of cooperation and need for adaptation on the part entities in order to obtain favourable outcomes. Fourth section continues the discussion along the biological evolutionary lines and adds the crucial dimension of social organisation. Consequent changes that altered the ways in which societies and economies developed are captured in the fifth section. The final and concluding section is devoted to exploring avenues for building of theories that explain cooperative forms of organisation. |
| Keywords: | Business-Business Marketing, Marketing Strategy, Relationship Marketing |
| Date: | 2006–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2006-02-03&r=mkt |
| By: | Oburai Prathap; Baker Michael J |
| Abstract: | The marketing discipline is evolving and so is its agenda with the advent of relationship marketing, networks and other related sub-fields. Till recently, business literature focused largely on competition, and cooperation, its counter part, has received insufficient attention. With a view to redress the situation, this research article investigates the phenomenon of customer supplier alliances and partnerships and aims to make fundamental theoretical contributions in the sub-field of business-to-business relations and cooperation. Eclectic and wide-ranging enquiry is a main research tool employed and hence the character of this research is interdisciplinary. An extensive literature review of a number of related disciplines is undertaken in order to capture the essence of relationship strategies and their implications. The ideas and alternative research processes were exposed to critical scrutiny by a few marketing scholars to increase feedback and validity of ideas. In addition, a qualitative exploratory survey was carried out in order to understand the strategic issues concerning alliances and partnerships. The research findings were combined with theoretical ideas to derive a Routines-Relationships-Resources (3Rs) model. This 3Rs model is made up of three cores that underlie all business strategies including those designed to generate competitive advantage through the route of cooperative alliances and partnerships. |
| Date: | 2006–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2006-02-05&r=mkt |
| By: | Rosemary J. Avery; Donald S. Kenkel; Dean R. Lillard; Alan D. Mathios |
| Abstract: | In this paper we investigate how direct-to-consumer (DTC) advertising of pharmaceutical products in affected by regulations of the Food and Drug Administration and by market conditions. We focus on a relatively under-studied segment of the pharmaceutical market -- the market for smoking cessation products. Because of their proven effectiveness, these products could be the key to meeting public health goals to reduce smoking. However, in many ways, smoking cessation products have been more heavily regulated than cigarettes. Our empirical analysis uses data on advertising expenditures and data from an archive of print advertisements. The archive includes all smoking cessation product advertisements that appeared in over 13,000 issues of 28 magazines between January 1985 and May 2002. Our study period begins shortly atfer the first nicotine replacement product was introduced, and covers the evolution of the market as new products are introduced while some of the older products move from prescription to over-the-counter (OTC) status. OTC status eases the disclosure requirements imposed on advertisements of prescription pharmaceuticals, substantially reducing the costs of a print advertisement. Our results suggest that OTC status is associated with an increase in advertising expenditures and the number and pages of magazine advertisements. A current proposal to reduce disclosure requirements on all DTC advertisements of prescription drugs could have similar effects. Our results also suggest that advertising increase with the introduction of new products and with market competition. |
| JEL: | I1 L5 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12001&r=mkt |
| By: | Paul H. Jensen (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Elizabeth Webster (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne) |
| Abstract: | This paper examines the effects of market power and product differentiation on demand for grocery products in Australia over the period 2002 to 2005. We construct a model of the relationship between demand, market power and brand characteristics and then estimate the model using monthly data on price, quantity and volume sold for a bundle of 92 brands in 12 product categories from major supermarket stores across Australia. We also use data on the characteristics of each brand such as whether the product is environment-friendly, is a “private label”, or is made from recyclable materials. Our results suggest that firms are able to affect their demand curves through both product differentiation strategies and through market power. |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2006n05&r=mkt |
| By: | Chang-Ho Yoon; Young-Woong Song; Byoung Heon Jun |
| Abstract: | The paper examines the possibilities to improve efficiency in Internet pricing by introducing pre-purchase contract. One can regard pre-purchase market as a device for providing guaranteed services and as an alternative to smart market that can implement expected capacity pricing in an efficient manner. We find that the pre-purchase market tends to discriminate against the consumers who are less certain about their demands. We provide a condition under which the discriminatory effect is overwhelmed by the market force, which discourages the consumers with lower value by high premium. We also suggest a solution to the discriminatory effect. |
| URL: | http://d.repec.org/n?u=RePEc:iek:wpaper:0508&r=mkt |
| By: | Vantomme, D.; Geuens, M.; De Houwer, J.; De Pelsmacker, P. |
| Abstract: | We examined the usefulness of an implicit attitude measure (IAT) to explain the weak attitude-behavior relationships often found in research about ethical consumer behavior. The results indicated that the IAT effects for buyers and non-buyers of Fair Trade products were significantly different, showing that the IAT can be used to differentiate between buyers and non-buyers. Further, the authors conclude that the IAT has unique predictive validity and that most importantly implicit attitudes need to be enhanced to raise ethical consumer behavior. |
| Date: | 2006–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:vlg:vlgwps:2005-30&r=mkt |
| By: | Junmin Wan (Osaka School of International Public Policy, Osaka University) |
| Abstract: | I estimated inter-brand cigarette demands with nicotine, tar content and policy event information in Japan during 1950-84. The demand for all brands increased but the demand for plain (non-filter) brands decreased due to the dissemination ofgA Note about Health Damage from Smoking h in 1964. The demand for all brands increased but the demand for high-nicotine brands decreased due to the disclosure of nicotine and tar content in 1967 and the labeling warnings in 1972, however consumers had still preferred high-nicotine brands after 1972. Contrastively, the demand for high-tar brands increased in 1967 but decreased in 1972, and consumers had switched to prefer low-tar brands after 1972. Disclosure did not reduce the intake of nicotine but reduced the intake of tar, accordingly disclosure may benefit consumers by reducing the health risk as tar causes cancers. In line with changes in inter-brand demands, the monopolistic firm discontinued old products with poorer quality (plain, high-tar) but provided new better ones (filter-tipped, low-tar). |
| Keywords: | disclosure, nicotine, tar, cigarette, inter-brand, panel estimation, difference in difference |
| JEL: | I18 D12 D82 |
| Date: | 2004–06 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:0413r&r=mkt |
| By: | Adams, L.; Geuens, M. |
| Abstract: | An experiment was conducted to examine the effect in adolescents of different health appeals (healthy versus unhealthy) in ads for healthy and unhealthy perceived foods. The results did not reveal a main effect of product or slogan, but indicated a significant interaction effect between slogan and product. The healthy slogan only led to significantly more positive attitudes and purchase intentions when it promoted a healthy food product. An unhealthy food product received better results in combination with an unhealthy slogan than with a healthy one. This indicates that adolescents react better to ads in which the health appeal is congruent with the health perception of the product. Moreover, we took into account gender and health concern as potential moderators in the relationship between slogan and ad responses. Gender did not lead to different responses to healthy or unhealthy food ads, whereas health concern did interact significantly with the slogan type. Highly concerned adolescents responded more favorably to a healthy slogan in terms of attitudes. A necessary first step seems to be making adolescents more health conscious. A following step is to reinforce their positive attitudes towards healthy foods and turn them into real behavior. |
| Date: | 2006–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:vlg:vlgwps:2005-34&r=mkt |
| By: | Austan Goolsbee; Peter J. Klenow |
| Abstract: | For some goods, the main cost of buying the product is not the price but rather the time it takes to use them. Only about 0.2% of consumer spending in the U.S., for example, went for Internet access in 2004 yet time use data indicates that people spend around 10% of their entire leisure time going online. For such goods, estimating price elasticities with expenditure data can be difficult, and, therefore, estimated welfare gains highly uncertain. We show that for time-intensive goods like the Internet, a simple model in which both expenditure and time contribute to consumption can be used to estimate the consumer gains from a good using just the data on time use and the opportunity cost of people's time (i.e., the wage). The theory predicts that higher wage internet subscribers should spend less time online (for non-work reasons) and the degree to which that is true identifies the elasticity of demand. Based on expenditure and time use data and our elasticity estimate, we calculate that consumer surplus from the Internet may be around 2% of full-income, or several thousand dollars per user. This is an order of magnitude larger than what one obtains from a back-of-the-envelope calculation using data from expenditures. |
| JEL: | D6 L0 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11995&r=mkt |
| By: | Vantomme, D.; Geuens, M.; De Houwer, J.; De Pelsmacker, P. |
| Abstract: | The purpose of this study was to examine the usefulness of implicit (automatic) attitudes to explain the weak attitude-behavior relationships often found in green consumer behavior research. Therefore, not only explicit but also implicit attitudes toward green consumer behavior were measured by means of the Implicit Association Test (IAT). Explicit measures revealed positive attitudes, while the IAT showed more positive attitudes toward the ecological than toward the traditional product (Experiment1) or no differences in these attitudes (Experiment 2 and follow-up study). When existing products were involved, implicit attitudes related to behavioral intention, even where the explicit attitude measure did not. |
| Date: | 2006–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:vlg:vlgwps:2005-31&r=mkt |
| By: | Larry Chavis; Phillip Leslie |
| Abstract: | The French Opposition to the war in Iraq in early 2003, prompted calls for a boycott of French wine in the US. We measure the magnitude of consumers’ participation in the boycott, and look at basic evidence of who participates. Conservative estimates indicate that the boycott resulted in 26% lower weekly sales at its peak, and 13% lower sales over the six month period that we estimate the boycott lasted for. These findings suggest that business should be concerned that their actions may provoke a boycott which hurts their profits. We also find that neither political preferences or media attention are important determinants of boycott participation. |
| JEL: | L0 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11981&r=mkt |
| By: | Douglas D. Davis (Department of Economics, VCU School of Business); Edward L. Millner (Department of Economics, VCU School of Business) |
| Abstract: | An experiment conducted to examine the effects of different discount formats on consumer purchases is reported. Participants made a series of purchase decisions for chocolate bars given (a) “rebates” from the listed price, (b) “matching” quantities of chocolates for each bar purchased, and (c) simple price reductions. Contrary to standard theoretical predictions, and consistent results in the context of charitable contributions by Eckel and Grossman (2003), we find that participants purchase significantly more chocolate bars under a “matching” sales format than under a comparable “rebate” format. Inattention to the net consequences of decisions, as well as some “rebate aversion”, explain the preference for matching discounts. |
| Keywords: | Consumer Behavior, Experiment, Discount Formats |
| JEL: | C91 D11 D46 |
| Date: | 2004–09 |
| URL: | http://d.repec.org/n?u=RePEc:vcu:wpaper:0401&r=mkt |