nep-mkt New Economics Papers
on Marketing
Issue of 2007‒05‒12
eight papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. A Contribution to Theory Building for Mobile Marketing: Categorizing Mobile Marketing Campaigns through Case Study Research By Pousttchi, Key; Wiedemann, Dietmar Georg
  2. Advertising and Cost Reduction By Giovanni Immordino
  3. CSR and Social Marketing: What is the desired role for Universities in fostering Public Policies? By Leitão, João; Silva, Maria José
  4. Are two-part tariffs efficient when consumers plan ahead?: An empirical study By Laura Fernàndez-Villadangos
  5. The Analysis of Five Competitive Forces of Non-Alcoholic Beverage Industry and E-Commerce Industry Cases at the global level By Manuel, Eduardo
  6. Competition in product design: An experiment exploring innovation behavior By Uwe Cantner; Werner Güth; Andreas Nicklisch; Torsten Weiland
  7. Do Consumers Pay Voluntarily? The Case of Online Music By Tobias Regner; Javier A. Barria
  8. The Determinants of Pricing in Pharmaceuticals: Are U.S. prices really higher than those of Canada? By Antonio Cabrales; Sergi Jiménez-Martín

  1. By: Pousttchi, Key; Wiedemann, Dietmar Georg
    Abstract: Marketing experts consider the mobile device as an extremely promising marketing tool as it supports them to cope with their major challenge: getting time and attention from customers. Current mobile marketing research mostly covers success factors and acceptance analysis. Categorization, when addressed, lacks in appropriate foundation and is not linked to objectives at all. In this article we examine 55 case studies in order to identify relevant characteristics of mobile marketing campaigns. The outcome of the paper is the derivation of four mobile marketing standard types and an examination of campaign objectives that can be addressed by mobile marketing. The proposed scheme allows to unambiguously characterize any given mobile marketing campaign and to identify the respective objectives.
    JEL: M21
    Date: 2006
  2. By: Giovanni Immordino (Università di Salerno and CSEF)
    Abstract: The empirical literature on internalization has found a positive relationship between advertising intensity and foreign direct investment. The model presented in this paper explains this evidence by a technological change in the communications environment and makes predictions for other cost-reducing investments. We consider a market in which a single producer launches a new product. At first potential buyers are unaware of the product and its price, and the producer decides the optimal advertising strategy. We find that both advertising spending and investment in per unit cost reduction are higher under targeting than under mass advertising when the advertising technology exhibits marginal economies of targeting.
    Keywords: Informative advertising, Targeting, Foreign Direct Investment, Cost reduction
    JEL: F23 L12 M37
    Date: 2007–05–01
  3. By: Leitão, João; Silva, Maria José
    Abstract: The paper aims to identify the role of Universities in fostering public policies, through the promotion of social responsibility, and the implementation of social marketing initiatives. This innovative approach is particularly interesting since the literature does not cover, until now, the importance of adopting a social responsibility strategy within Universities, in order to foster public policies for development. First, Corporate Social Responsibility should be developed at Universities. For this purpose, an integrative approach that embraces marketing, economic, ecological, and social aspects is proposed, through the design of a strategic action plan, which includes three operational levels: analysis, implementation and assessment. Second, in order to foster the impact of public policies for development, social marketing initiatives should be implemented among institutional and social networks where Universities assume an increasing strategic role.
    Keywords: Corporate Social Responsibility; Government Policy; Social Marketing.
    JEL: I28 M31 M14
    Date: 2007–04–25
  4. By: Laura Fernàndez-Villadangos (Grup de Recerca en Polítiques Públiques i Regulació Económiques (GPRE), Institut de Recerca d'Economia Aplicada (IREA), Departament de Política Econòmica i EEM, Universitat de Barcelona)
    Abstract: During the last two decades there has been an increase in using dynamic tariffs for billing household electricity consumption. This has questioned the suitability of traditional pricing schemes, such as two-part tariffs, since they contribute to create marked peak and offpeak demands. The aim of this paper is to assess if two-part tariffs are an efficient pricing scheme using Spanish household electricity microdata. An ordered probit model with instrumental variables on the determinants of power level choice and non-paramentric spline regressions on the electricity price distribution will allow us to distinguish between the tariff structure choice and the simultaneous demand decisions. We conclude that electricity consumption and dwellings’ and individuals’ characteristics are key determinants of the fixed charge paid by Spanish households Finally, the results point to the inefficiency of the two-part tariff as those consumers who consume more electricity pay a lower price than the others.
    Keywords: Regulation, electricity, consumer behavior: empirical analysis.
    JEL: L94 Q41 D12
    Date: 2006–10
  5. By: Manuel, Eduardo
    Abstract: This paper has as objective to do an analysis of five competitive forces of non-alcoholic industry and e-commerce industry at the global level. The state of five competitive forces in both industries will depend always of evolution of these industries and government policies of the different countries of the world. For example if these industries are growing and if the govern permit others companies can enter into industry and can help to promote the competition in these industries, that is good for buyers, because they can choose where want to purchase something and what products or goods are according to their necessities or that permits to maximize their utility and it is according to their money amount available for it.
    Keywords: Industry; Non-alcoholic beverage industry; E-Commerce industry; Five competitive forces
    JEL: L81 L69 D29 A23 M19 L29 L19
    Date: 2007–04–14
  6. By: Uwe Cantner (University of Jena, School of Busniess and Economics); Werner Güth (Max Planck Institute of Economics Jena, Strategic Interaction Unit); Andreas Nicklisch (Max Planck Institute for Research on Collective Goods, Bonn, Germany); Torsten Weiland (Max Planck Institute of Economics Jena, Strategic Interaction Unit)
    Abstract: We experimentally investigate competition in innovation in a patent race scenario. Pairs of subjects compete as seller firms on a duopoly market, engaging in risky search investments. Successful innovation is rewarded through temporary monopoly rents. Throughout the interaction, subjects receive feedback on own and other’s search success and profit margin. Partitioning subjects into subgroups of investor types reveals that the majority of subjects condition investments on the degree of competition as measured by sales shares, while for others no correlation is ascertained. Heterogeneity in individual risk attitudes and differing experiences with related search tasks may explain this finding.
    Keywords: innovation, competition, imitation, patent race
    JEL: D81 L11 O31
    Date: 2007–05–07
  7. By: Tobias Regner (University of Jena, School of Busniess and Economics); Javier A. Barria (Intelligent Systems & Networks group, Department of Electrical and Electronic Engineering, Imperial College London)
    Abstract: The paper analyses the payment behaviour of customers of the online music label Magnatune. Customers may pay what they want for albums, as long as the payment is within a given price range ($5-$18). Magnatune’s comprehensive pre-purchase access facilitates music discovery and allows an informed buying decision setting it apart from conventional online music stores. On average customers pay $8.20, far more than the minimum of $5 and even higher than the recommended price of $8. We analyse the relationship between artists/labels and customers in online music. We consider social preferences, in particular concerns for reciprocity. The resulting sequential reciprocity equilibrium corresponds to the observed pattern of behaviour. We conclude that Magnatune’s open contracts design can encourage people to make voluntary payments and may be a viable business option.
    Keywords: social preferences, reciprocity, music industry, experience goods, psychological game theory, emotions
    JEL: C24 C70 C93 D82 L82
    Date: 2007–05–01
  8. By: Antonio Cabrales; Sergi Jiménez-Martín
    Abstract: This paper studies price determination in pharmaceutical markets using data for 25 countries, six years and a comprehensive list of products from the MIDAS IMS database. We show that market power and the quality of the product has a significantly positive impact of prices. The nationality of the producer appears to have a small and often insignificant impact on prices, which suggests that countries which regulates prices have relatively little power to do it in a way that advances narrow national interest. We produce a theoretical explanation for this phenomenon based on the fact that low negotiated prices in a country would have a knock-on effect in other markets, and is thus strongly resisted by producers. Another key finding is that the U.S. has prices that are not significantly higher than those of countries with similar income levels. This, together with the former observation on the effect of the nationality of producers casts doubt on the ability of countries to pursue "free-riding" regulation.
    Keywords: Pharmaceutical prices
    JEL: I10 I18 L65
    Date: 2007–04

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