nep-mkt New Economics Papers
on Marketing
Issue of 2006‒10‒14
eleven papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior

  1. Influence of Advertising Variability, Brand Extension Effects, Brand Name, Variety Seeking Behavior and Customer Value on Buying Decisions: A Multi-experiment Analysis By Rajagopal
  2. Consumer Response to Seasonal Clearance Sales: Experimental Analysis of Consumer Personality Traits in Self Service Stores By Rajagopal
  3. Brand Value, Preference and Customer Value Effects of Non-conventional Utility Products: An Experimental Analysis in Mexican Market By Rajagopal
  4. Leisure Shopping Behavior and Recreational Retailing:A Symbiotic Analysis of Marketplace Strategy and Consumer Response By Rajagopal
  5. A study into the foundations of CRM success By Peelen, Ed; Beltman, Rob; Montfoort, Kees van; Klerkx, Arnoud
  6. Competitive Nonlinear Pricing and Bundling By Mark Armstrong; John Vickers
  7. Architecting Brands: Managerial Process and Control for Emerging Enterprises By Rajagopal
  8. Technology and Customer Value Dynamics in Banking Industry: Measuring Symbiotic Influence in Growth and Performance By Rajagopal
  9. Brands and the Expansion of the Sherry Exports, 1920-1980 By Eva Fernandez
  10. Agriculture, food safety, and foodborne diseases: understanding the links between agriculture and health By Todd, Ewen C. D.; Narrod, Clare
  11. MAGAZINE SALES PROMOTION: A DYNAMIC RESPONSE ANALYSIS By Mercedes Esteban-Bravo; Jose M. Mugica; Jose M. Vidal-Sanz

  1. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: The belief that individual difference in brand preference or choice behavior are caused by personality differences has not always been supported by empirical research. The experiment on the variety seeking behavior of consumers, discussed in this paper argues that although consumers are seeking novelty and unexpectedness in a brand that they have not bought before, their purchase will be selective, in reference to the empirical investigation. The perceptions on brand name in reference to brand risk and brand differences have been the prime factors in making buying decision for new brands among the consumers. Consumers also ascertain the brand name associated with the unfamiliar brands as they feel high risk averse and entangle in decision making with perceived brand differences. The paper discusses the influence of advertising, brand name, variety seeking behavior and customer value towards making buying decisions. The study has been divided into four experiments carried out in reference to retail business environment in Mexico.
    Keywords: Advertising, media communication, brand extension, customer value, cognitive behavior, decision making
    JEL: D11 M31 M37
    Date: 2006–08
  2. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: Consumer responses to clearance sales, both in terms of consumer satisfaction with the decision process and in terms of subsequent store choice behavior, are explored in the paper through four controlled experiments conducted involving clearance sales in a consumer choice and decision satisfaction context. The results suggest that consumer response to clearance sales is driven to a large extent by two factors: the effect of a clearance sale on the available options of goods and the degree of store loyalty. Response to a clearance sale was found to be a function of two primary forces-the degree to which a consumer was personally committed to the discount sales alternative, and changes in the difficulty of making a decision due to limitation of buying options. Overall, the discussion of results of the four studies presented in the paper demonstrates that consumer response to clearance sales, both in terms of decision satisfaction levels and observed store-loyalty behavior, are strongly influenced by the variables of price sensitivity, attractiveness of products, store-loyalty and perceived value on available brands.
    Keywords: Customer value, product attractiveness, advertising, sales motivation, retailing, brand value
    JEL: C12 C91 D11 M30
    Date: 2006–08
  3. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: The role of customer value has been largely recognized over time by the firms as an instrument towards stimulating market share and profit optimization. The customer values for innovative products and unfamiliar brands of firm in competitive markets are determined largely by habits, reinforcement effects, and situational influences than strongly-held attitudes. Marketing organic cosmetics is a recent phenomenon in the business and it is largely being encouraged by the growing environmental consciousness among the customers. Many multinational companies have entered the market of organic cosmetics and toiletries (OCT) in the global marketplace. However, there has been little awareness among the elite customers in Latin American markets about the harmful effects of synthetic cosmetics on prolonged usage. This study attempts to discuss the impact of economic and relational variables on customer and brand values in reference to OCT products in Mexico through empirical investigation in selected departmental stores that attract high profile customers.
    Keywords: Customer value, product attractiveness, advertising, sales motivation, retailing, brand value
    JEL: B41 C13 C51 D11 E21 M37 M39
    Date: 2006–08
  4. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: Consumers often benefit from increased competition in differentiated product settings during leisure shopping season. The wide choice, atmosphere, convenience, sales people, refreshments, location, promotional activities and merchandising policy are associated during the leisure shopping. The consumer shopping behavior during leisure is largely driven by the recreational infrastructure as a competitive strategy of retailers. This also helps developing store loyalty, innovative concern and the high perceived customer values whereby individuals experience enjoyment from shopping. This paper aims to analyze through an empirical investigation in Mexico, drivers which influence consumers’ leisure shopping behavior and measure customer value in terms of levels of satisfaction. The study also focuses on the role of in-store recreational infrastructure and retail selling strategies in swaying the leisure shopping and driving store loyalty.
    Keywords: Recreational retailing, shopping behavior, store loyalty, customer value, production attractiveness, brand variability
    JEL: C51 C91 D12 M31
    Date: 2006–08
  5. By: Peelen, Ed; Beltman, Rob; Montfoort, Kees van; Klerkx, Arnoud (Nyenrode Business Universiteit)
    Abstract: Customer Relationship Management has attracted the attention of both marketing practitioners and researchers over the last decade. Despite, or maybe due to, the attention drawn to the subject, a clear agreement on what CRM is and especially how CRM should be developed remains lacking. It is now commonly understood that CRM involves technology, drives Marketing, Sales and Customer Services and is often approached as a business strategy to create value for an organization through the creation of profitable long-term customer relationships. Significant progress has been made in identifying and researching the components of CRM individually. The role of CRM applications, customer knowledge, customer satisfaction and a customer-centric strategy have all been subject of research lately. However, to our knowledge, no comprehensive research has been conducted into the role of these CRM components in achieving CRM success across the line. Also we have yet to find research that shows the relationship between each component. The goal of our research is to determine the impact of each component of CRM on each other and on CRM success. We will strive to do so by using qualitative research into successful CRM practitioners to create research propositions. These propositions will in turn be tested in a quantitative analysis of data collected from 250 Dutch companies. Through building a Structural Equation Model (Sem-model), we determine the role and influence of the key components of CRM on each other and on CRM success.
    Keywords: Customer Relationship Management, Customer Centricity, CRM Components, CRM Success
    Date: 2006
  6. By: Mark Armstrong; John Vickers
    Abstract: We examine the impact of multiproduct nonlinear pricing on profit, consumer surplus and welfare in a duopoly. When consumers buy all their products from one firm (the one-stop shopping model), nonlinear pricing leads to higher profit and welfare, but often lower consumer surplus, than linear pricing. By contrast, in a unit-demand model where consumers may buy one product from one firm and another product from another firm, bundling generally acts to reduce profit and welfare and to boost consumer surplus. In a more general model where consumers may buy from more than one firm and where consumers have elastic demands for each product, nonlinear pricing has ambiguous effects. Compared with linear pricing, nonlinear pricing tends to raise profit but harm consumer surplus when: (i) demand is elastic, (ii) there is substantial product differentiation, (iii) there is substantial heterogeneity in consumer demand, (iv) consumers face substantial shopping costs when visiting more than one firm, and (v) a consumer`s brand preference for one product is strongly correlated with her brand preference for another product. Nonlinear pricing is more likely to lead to welfare gains when (i), (ii), (iv) and (v) hold, but (iii) does not.
    Keywords: Nonlinear Pricing, Bundling, Discounts
    JEL: D43 L13
    Date: 2006
  7. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: The paper discusses the relevance of hierarchy of brands, and the role of brand audit to manage the brand portfolio of a firm emerging in competitive business arena. The discussion in the paper also delineates the steps involved in architecting a brand in a firm from the managerial perspective. The value of corporate brand endorsement across different products and product lines, and at lower levels of the brand hierarchy also needs to be assessed. Use of corporate brand endorsement either as a name identifier or logo identifies the product with the company, and provides reassurance for the customer. The brand architecture should incorporate the entire firm's existing brands, whether developed internally or acquired. It should provide a framework for consolidation in order to reduce the number of brands and strengthen the role of individual brands.
    Keywords: Brand architecture, brand hierarchy, brand audit, brand positioning
    JEL: M30 M31
    Date: 2006–08
  8. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: This paper attempts to critically examine the available literature on the subject, discuss a model that provides a framework for analyzing the variables associated with customer value, and to identify potential research areas. The paper argues through a set of linear equations that maximizing customer value which is interdependent factor for technology adoption and profit optimization in the banks need to be backed with appropriate economic parameters for attaining competitive efficiency and optimizing profit. The framework of the construct is laid on the theory of competitive advantage and customer lifetime value, so as to maximize the potential of the organization and all its subsystems to create and sustain satisfied customers. The paper draws theoretical impetus from new technologies in banking services such as mobile banking in the North American region and discusses the technology led marketing process towards optimizing profit. The discussion in the paper also analyzes the main criteria for successful internet-banking strategy and brings out benefits of e-banking from the point of view of banks, their technology and customer values and tentatively concludes that there is increasing returns to scale in the bank services in relation to the banking products, new technology and customer value.
    Keywords: Banking technology, customer value, profit optimization, diffusion and adoption process
    JEL: C21 C51 D21 D91 G21 O14 O33
    Date: 2006–08
  9. By: Eva Fernandez
    Abstract: This This paper looks at the role of brands in the expansion of sherry exports into the UK during the 20th century. From 1920, the leading Spanish sherry firms (Domecq and González Byass) popularized their own brands through wide advertising campaigns and increased their commitment with the import market establishing distribution alliances and subsidiaries. The sale of their own brands allowed firms to overcome the reputation problems that had caused a decline of exports from 1870 onwards. During the second half of the 20th century the advertising budget of the firms increased even more, allowing exports to multiply by 7 between 1950 and 1980, and placing sherry as the second alcoholic beverage consumed in the UK after beer. The increasing competition placed by imitators and new entrants selling at lower prices to overtake the market power of leading brands, led Spanish leading firms to cut margins and compete on prices during the 1970s. The profitability of the sherry business declined in the UK, but the marketing knowledge acquired by the use of brands and the increasing integration into distribution allowed Spanish leading firms (especially Domecq) to grow internationally.
    Date: 2006–10
  10. By: Todd, Ewen C. D.; Narrod, Clare
    Abstract: "To improve the ability of farmers in developing countries to reduce the burden of foodborne illness, government agencies need to take the following steps: (1) Implement a farm-to-table approach to agricultural health by focusing efforts on the prevention of potential food safety and agricultural health threats at all stages of the supply chain including production, processing, marketing, and retailing. (2) Raise awareness among decisionmakers, public servants, producers, traders, and consumers about the potential sources of food safety problems and ways to protect against such problems. (3) Encourage a multi-stakeholder approach to improving public health. (4) Strengthen surveillance and diagnostic capacity in all countries to improve measurement of prevalence and detection of outbreaks. (5) Strengthen risk analysis capacity to help decisionmakers in all countries to set strategies and priorities, to consider the many needs of the supply chain, and to increase their focus on the preharvest stage. (6) Switch from command-control policies to performance-based standards to meet national and international food safety goals. Command-control policies are often less flexible and have higher fixed costs, which may result in the displacement of poor producers from the market. (7) Improve infrastructure and access to cold storage facilities to ensure the delivery of highly perishable foods to distant markets. (8) Support efforts to improve supply chain management to improve food safety along the whole supply chain." From text
    Keywords: Agriculture-health linkages, Agriculture, Health and nutrition, Agricultural technology, Food safety, Diseases, Education, Supply chain management, Risk analysis,
    Date: 2006
  11. By: Mercedes Esteban-Bravo; Jose M. Mugica; Jose M. Vidal-Sanz
    Abstract: This paper studies the impact and effectiveness of a type of non-price promotion often used in the European periodical magazines industry to stimulate sales, in which a value pack is sold containing the magazine issue plus another product. Magazines are sold simultaneously with and without promotion at different prices, and promotions are serialized by fractioning the additional product across different issues of the magazine. We find that promoted magazines contemporarily cannibalize non-promoted sales; but this loss is compensated by a medium term increase of non-promoted sales. These results show that this sales promotion strategy is an effective way to diminish the decline rate of periodical sales.
    Date: 2006–10

This nep-mkt issue is ©2006 by Joao Carlos Correia Leitao. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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