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on Marketing |
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Issue of 2007‒02‒10
five papers chosen by Joao Carlos Correia Leitao University of the Beira Interior |
| By: | B. LARIVIÈRE; D. VAN DEN POEL |
| Abstract: | This study addresses an important issue for both managers and researchers: whether it is advantageous for financial services providers to invest in youth marketing. More specifically, the effectiveness of these investments is evaluated in terms of retention proneness once youngsters enter the lifecycle event of “moving in together”. The study identifies eight constructs of youth marketing and contrasts their impact against the best deal when youngsters decide to move in together and consequently experience the need to buy their first collectivized financial products, such as a joint account or a mortgage for their new home. Furthermore, the influence of the partner, prior patronage behaviour, customer demographics and psychographic variables are tested for. The findings of the study reveal that (i) individuals are likely to change their banking behaviour during crucial lifetime events such as moving in together, (ii) not all youth marketing investments are equally effective, while (iii) the best deal components (e.g. convenience, price conditions, etc.) have a major impact. |
| Keywords: | Marketing; Banking; Strategic planning; Ordered logit analysis. |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:07/433&r=mkt |
| By: | Andrew F. Daughety (Department of Economics and Law School, Vanderbilt University); Jennifer F. Reinganum (Department of Economics and Law School, Vanderbilt University) |
| Abstract: | Firms communicate product quality attributes to consumers through a variety of channels, such as pricing, advertising, releases of research reports and test results, or warranties and returns policies. The conceptualization of the economics of such communication is that it takes on one of two alternative forms when quality is exogenous: 1) disclosure of quality through a credible direct claim; 2) signaling of quality via producer actions that influence buyers¹ beliefs about quality. In general, these two literatures have ignored one-another. In this paper we argue that disclosure and signaling are two sides of a coin and that firms should be viewed as choosing which means of communication they will employ. Moreover, we show that integration of these two alternatives leads to a number of new implications about disclosure, signaling, firm preferences over type, and the social efficiency of the channel of communication employed. |
| Keywords: | Disclosure, signaling, quality, efficiency |
| JEL: | D82 L15 K13 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:van:wpaper:0703&r=mkt |
| By: | Aalto-Setälä , Ville (Bank of Finland, National Consumer Research Center); Schindler, Robert (Rutgers University, Camden) |
| Abstract: | Nominal rigidities have an important role in macro models used for the analysis of monetary policy. Re-cently, attractive prices (also known as price points) have often been referred to as one important potential explanation of nominal rigidities. An increased interest on attractive prices as an explanation for price ri-gidities rests on online pricing, in the context of which it has been shown that prices are rigid also on the internet, where physical costs are not important. Our empirical analyses using micro data on consumer prices in Finland indicate that a specific form of attractive prices – 9-ending prices – have a considerable effect on pricing dynamics. The results of the study show that changes to prices with 9 endings are more often decreases than are changes to prices with other endings. Price changes to 9-ending prices are also of smaller size than are changes to other endings. |
| Keywords: | rigidity; price endings; attractive prices; 9-prices |
| JEL: | D01 E42 |
| Date: | 2006–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2006_030&r=mkt |
| By: | Dahlberg , Tomi; Öörni , Anssi |
| Abstract: | The Bank of Finland’s Finnish Payment Habits 2010 project predicts that Finnish payment habits will face substantial changes. The causes for these changes include: the standardisation and integration of European payment systems, development of payment services-related legislation and regulation at EU level, changes in payment services-related cost factors and pricing, and new opportunities offered by technological advances. The last few years have seen a surge in new payment instruments and services. Increasing reliance on information and communication technology is characteristic to the development of these payment instruments, the vast majority of which have however failed to entice consumers. To increase our understanding of changes in payment patterns, this report analyses consumer needs, tastes and payment habits as new payment systems are adopted. <p> Research data was collected in September 2005 using a mail-survey covering the central payment methods and addressed to 2,000 randomly-sampled Finnish consumers. According to our findings, security and trustworthiness are the most important characteristics of any new payment instrument. Other essential characteristics are the ability to produce good transaction-related information, compatibility with shopping and payment habits, accessibility, ease of use, time and cost savings, as well as time and place independence. New payment instruments – electronic billing and paying for shopping by mobile phone – are not likely to supersede conventional payment methods by 2010 when judged by the aforementioned characteristics: Trust and cost factors do not separate consumers well-disposed towards electronic bills and mobile payments from those set against these payment methods. A relatively restricted group of differentiating factors was found. Ease of use is a common differentiating factor for both electronic bills and mobile payments adoption. Additionally, accessibility is a differentiating characteristic in mobile payments adoption. |
| Keywords: | payment habits; payment services to consumers; consumer behaviour; diffusion of innovations; theory of planned behaviour (TPB) |
| JEL: | A14 D14 L81 O33 |
| Date: | 2007–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2006_032&r=mkt |
| By: | Knippenberg, D.L. van; Cremer, D. de; Knippenberg, B. van (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | Research in leadership effectiveness has paid less to the role of leader fairness than probably it should have. More recently, this has started to change. To capture this development, we review the empirical literature in leadership and fairness to define the field of leadership and fairness, to assess the state of the art, and to identify a research agenda for future efforts in the field. The review shows that leader distributive, procedural, and especially interactional fairness are positively associated with criteria of leadership effectiveness. More scarce and scattered evidence also suggests that fairness considerations help explain the effectiveness of other aspects of leadership, and that leader fairness and other aspects of leadership, or the leadership context, may interact in predicting leadership effectiveness. We conclude that future research should especially focus on interaction effects of leader fairness and other aspects of leadership, and on the processes mediating these effects. |
| Keywords: | Leadership effectiveness;Fairness; |
| Date: | 2006–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30009548&r=mkt |