nep-mkt New Economics Papers
on Marketing
Issue of 2006‒06‒10
seven papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior

  1. Co-branding in advertising: the issue of product and brand fit By M. GEUENS; C. PECHEUX
  2. The moderating impact of relational strength on the relationship between relationship quality and purchasing behavior By M. H. DE CANNIÈRE; P. DE PELSMACKER; M. GEUENS
  3. Increasing the Market Access for Agricultural Products from Bangladesh to the EU By Jorge Nufiez Ferrer
  4. The Emotional Experience of Guilt in Ethically Questionable Consumer Situations By S. STEENHAUT; P. VAN KENHOVE
  5. Information Spillovers in the Market for Recorded Music By Ken Hendricks; Alan Sorensen
  6. Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications By Lence, Sergio H.; Marette, Stéphan; Hayes, Dermot J.; Foster, William
  7. Local Network Externalities and Market Segmentation By Banerji, A; Dutta, Bhaskar

    Abstract: Three studies are conducted to investigate co-branding in advertising by manipulating product and brand fit. Polarity of brand images (positive or neutral) and the type of ad processing (topdown versus bottom up) were also taken into account. The results show that either product or brand fit is sufficient to produce positive attitudes towards the core brand in case of a high image core brand. However, these results do not hold for core brands with a neutral image. In that case, brands better team up with a brand possessing high product fit and/or a positive image instead of a similar image.
    Date: 2006–04
    Abstract: We investigate the moderating impact of relational strength on the relationship quality model, that is extended from intentions onto real behaviour. Empirical investigations are conducted in the context of apparel buying, combining survey and data base information. Relational strength impacts the attitudesintentions as well as the intentions-behavior relationship. The opposite signs of the effects may explain disappointing results when relationship quality is used to boost behavioral loyalty.
    Date: 2006–03
  3. By: Jorge Nufiez Ferrer
    Abstract: This paper analyses the present developments and future prospects for increased agricultural trade for Bangladesh with the EU. The trade relationship with the European Union (EU) is seeing important changes in recent years. The EU has unilaterally eliminated in 2001 tariff barriers for products originating in Less Developed Countries through the Everything But Arms (EBA) agreement, which includes the highly protected agricultural products. This creates important export opportunities for Bangladesh. The paper analyses in detail the export trends for major agricultural products from Bangladesh and other countries in the region to look for any evidence of an impact from the EBA. Despite the short period analysed, there are indications of some positive impacts. However, these are often rather weak and at times there are none where expected. Analysing the trends of regional competitors, the paper implies that even with EBA Bangladesh lacks price competitiveness in some products, and most importantly a lack of marketing strategy directed towards EU consumers. For the future, the impact of the EBA will also depend on a number of other factors, such as any progress in the farm liberalisation negotiations at WTO, amendments in the Sanitary and Phytosanitary rules and the reform of the EU’s Common Agricultural Policy. All of these factors have the potential to erode the benefits of the EBA considerably. The paper also addresses some important strategic aspects to improve import opportunities, from marketing to taking advantage of the trade related assistance offered by the EU to the less developed countries.
    Keywords: Agriculture, Agricultural products, Market Access, Export, Eu, Bangladesh
    JEL: F1 F13 F14
    Date: 2006–04
    Abstract: The current research scrutinizes the discrete emotion of guilt in situations in which the consumer benefits at the expense of the seller. A first objective was to endorse previous made assumptions of guilt being an important emotion in ethically questionable consumer situations. Therefore, in a first study the experience of guilt (versus shame) is explored across four different questionable consumer behaviors relying on two key ingredients of the guilt emotion, i.e. perceived control and omission/commission. A second objective was to examine what causes guilt to occur in these questionable situations (study 2a/b). Two distinct conceptualizations of the guilt emotion are investigated, i.e. the intrapsychic and interpersonal perspective. Results support both notions of the guilt emotion separately in the context of consumer ethics. When investigating the consequent ethical intentions, it was found to be sufficient for consumers’ behavioral decisions to alter if one of the two perspectives is made salient, that is, when guilt is aroused. Implications are discussed for both consumer ethics literature and consumer behavior research in general.
    Date: 2006–04
  5. By: Ken Hendricks; Alan Sorensen
    Abstract: This paper studies the role of consumer learning in the demand for recorded music by examining the impact of an artist’s new album on sales of past and future albums. Using detailed album sales data for a sample of 355 artists, we show that the release of a new album increases sales of old albums, and the increase is substantial and permanent—especially if the new release is a hit. Various patterns in the data suggest the source of the spillover is information: a new release causes some uninformed consumers to learn about their preferences for the artist’s past albums. These information spillovers suggest that the high concentration of success across artists may partly result from a lack of information, and they have significant implications for investment and the structure of contracts between artists and record labels.
    JEL: D83 L15 L82
    Date: 2006–05
  6. By: Lence, Sergio H.; Marette, Stéphan; Hayes, Dermot J.; Foster, William
    Abstract: This paper examines the incentive of atomistic agricultural producers within a specific geographical region to differentiate and collectively market products. We develop a model that allows us to analyze the market and welfare effects of the main types of real-world producer organizations, using it to derive economic insights regarding the circumstances under which these organizations will evolve, and describing implications of the results obtained in the context of an ongoing debate between the European Union and United States. As the anticipated fixed costs of development and marketing increase and the anticipated size of the market falls, it becomes essential to increase the ability of the producer organization to control supply in order to ensure the coverage of fixed costs. Whenever a collective organization allows a market (with a new product) to exist that otherwise would not have existed there is an increase in societal welfare. Counterintuitively, stronger property right protection for producer organizations may be welfare enhancing even after a differentiated product has been developed. The reason for this somewhat paradoxical result is that legislation aimed at curtailing the market power of producer organizations may induce large technological distortions.
    Keywords: agricultural products, collective promotion, geographic indications, supply control, quality.
    Date: 2006–05–31
  7. By: Banerji, A (Delhi School of Economics, University of Delhi); Dutta, Bhaskar (Department of Economics, University of Warwick,)
    Abstract: This paper models interaction between groups of agents by means of a graph where each node represents a group of agents and an arc represents bilateral interaction. It departs from the standard Katz-Shapiro framework by assuming that network benefits are restricted only amongst groups of linked agents. It shows that even if rival firms engage in Bertrand competition, this form of network externalities permits strong market segmentation in which firms divide up the market and earn positive profits. The analysis also shows that some graphs or network structures do not permit such segmentation, while for others, there are easy to interpret conditions under which market segmentation obtains in equilibrium
    Keywords: network structure ; network externalities ; price competition ; market segmentation
    JEL: D7
    Date: 2005

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