nep-mkt New Economics Papers
on Marketing
Issue of 2006‒06‒17
four papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior

  1. A Market Basket Analysis Conducted with a Multivariate Logit Model By Yasemin Boztug; Lutz Hildebrandt
  2. Non-price advertising and price competition: a theory, and evidence from the Brazilian beer market By Renato D.B. Gomes; João Manoel Pinho de Mello
  3. Opportunities to Improve Household Food Security Through Promoting Informal Maize Marketing Channels: Experience from Eastern Cape Province, South Africa By Lulama Ndibongo Traub; T.S. Jayne
  4. “Ineffective” competition: a puzzle? By Andrej V. Ivanov; Florian Mueller

  1. By: Yasemin Boztug; Lutz Hildebrandt
    Abstract: The following research is guided by the hypothesis that products chosen on a shopping trip in a supermarket can indicate the preference interdependencies between different products or brands. The bundle chosen on the trip can be regarded as the result of a global utility function. More specifically: the existence of such a function implies a cross-category dependence of brand choice behavior. It is hypothesized that the global utility function related to a product bundle results from the marketing-mix of the underlying brands. Several approaches exist to describe the choice of specific categories from a set of many alternatives. The models are discussed in brief; the multivariate logit approach is used to estimate a model with a German data set.
    Keywords: market basket analysis, multivariate logit model, brand choice behavior, marketing-mix
    JEL: C31 C33 M31
    Date: 2005–05
  2. By: Renato D.B. Gomes (Ph.D. Student, Department of Economics - Northwestern University.); João Manoel Pinho de Mello (Department of Economics PUC-Rio.)
    Abstract: By engendering horizontal differentiation, non-price advertising increases the incentives to accommodate on the price dimension. However, advertising also increases the size of the market and, consequently, the payoffs to price undercutting, which induces more aggressive price competition. We propose a theory in which advertising has a different effect on price competition according to the level of market maturity. In mature markets - where potential growth in low - only the price accommodation effect is present. In immature markets, both effects are present. Therefore, advertising is more procompetitive (less anti-competitive) in immature markets. Evidence from several Brazilian beer markets corroborates the theory.
    Date: 2006–05
  3. By: Lulama Ndibongo Traub; T.S. Jayne (Department of Agricultural Economics, Michigan State University)
    Abstract: Maize meal is a staple food in South Africa, particularly among the poor. The South African government by the mid-1980s enacted a series of legislations aimed at reducing the role of government within the market and placing increasing reliance on market forces and the private sector. Ex post studies of the impact of maize market reform in neighboring countries found that, in general, the reforms led to lower maize milling/retailing margins in real terms. However, in the case of South Africa, recent analysis indicates that maize market reform has not reduced processing and retailing margins in the maize meal supply chain. The study objectives are to determine actual and potential consumer demand for the types of maize meal capable of being produced by small-scale mills, to measure the potential impact of small-scale grain retailing and milling channels on households’ disposable income and food security, and to identify the factors responsible for the negligible role of small-scale milling sector in South Africa.
    Keywords: food security, food policy, maize, marketing, South Africa
    JEL: F14
    Date: 2006
  4. By: Andrej V. Ivanov (Chair for Applied Microeconomics, Department of Economics, Mannheim University, D-68131 Mannheim, Germany,; Florian Mueller (Chair for Applied Microeconomics, Department of Economics, Mannheim University, D-68131 Mannheim, Germany,
    Abstract: Conventionally, we think of an increase in competition as weakly decreasing prices, increasing the number of consumers served, thus increasing consumer surplus, decreasing firms profits, etc. Here, we demonstrate that, under some tame circumstances, an increase in competition may lead to a price increase in a horizontally differentiated market. We show this relationship for the petrol market in German cities.
    Date: 2006–05

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