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on Marketing |
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Issue of 2006‒03‒18
three papers chosen by Joao Carlos Correia Leitao Universidade da Beira Interior |
| By: | Henrik Cronqvist (The Ohio State University, Fisher College of Business, Department of Finance) |
| Abstract: | Using a unique large-scale event, the year 2000 launch of a privatized social security system involving individual savings accounts in Sweden, I report empirical evidence on the link between fund advertising and people’s fund and portfolio choices. First, content analysis reveals that a very small portion of ads can be construed as directly informative about characteristics relevant for rational mutual fund investors, such as funds’ expense ratios. Second, higher levels of advertising expenditures do not appear to signal ex ante higher unobservable fund manager quality or talent. Third, fund advertising affects people’s portfolio choices, even when advertising does not appear to contain any information. Finally, fund advertising steers people to portfolios with lower returns and higher risk. My results have important implications for a welfare analysis of fund advertising and portfolio choices, asset pricing models, and mutual fund industry policy making, and may serve as a starting point for wider and more formal analysis of the effects of advertising, marketing, and persuasion in financial markets. |
| Keywords: | Portfolio choice, Individual investor behavior, Mutual funds, Advertising |
| JEL: | G11 G18 G23 M37 |
| Date: | 2005–11 |
| URL: | http://d.repec.org/n?u=RePEc:crp:wpaper:44&r=mkt |
| By: | Regina Grafe (Nuffield College, Oxford) |
| Abstract: | Studies of consumption in early modern Europe fall into two groups. Some have looked at the overall supply of nutritional components to the average consumer in an attempt to trace standards of living. Others have examined the changing demand for particular goods by specific consumers to understand the way in which new goods and cultural and taste changes impacted on the economy. Few have tried to look at the interactions between both. By combining the contradictory evidence coming from supply and demand sides, new interpretations of the evidence emerge. Data on the supply of dried salted codfish (bacalao) to the Iberian markets and data available on the consumption of this good by specific groups of consumers are used to explain how this fish became a staple foodstuff in the Iberian diet. The existing literature has invoked both religion and cheapness as explanatory variables. This paper argues that both played an important role but that the overall increase was ultimately driven by the slow but continuous integration of more consumers into the market between 1600 and 1800. |
| JEL: | N33 |
| Date: | 2006–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:nuf:esohwp:_055&r=mkt |
| By: | Vanhuele, Marc; Damay, Coralie |
| Abstract: | At a very early age, the child becomes a real consumer and the prices becomes part of his daily basis. This exploratory study shows that the child acquires a knowledge of prices through a non linear and non cumulative training, marked out by formative incidents. He uses measures and strategies of price evaluation. This procedure is influenced by interest, expertise and experience of children product. |
| Keywords: | child-consumer; price konwoledge; memorization and estimation of prices |
| JEL: | D11 E31 |
| Date: | 2005–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:heccah:0820&r=mkt |