nep-mkt New Economics Papers
on Marketing
Issue of 2007‒07‒07
five papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Explaining Online Purchase Intentions: A Multi-Channel Store Image Perspective By Verhagen, Tibert; Dolen, Willemijn van
  2. Corporate Real Estate and Competitive Strategy By Singer, Bas P.; Bossink, Bart A.G.; Van de Putte, J.M.
  3. To Abuse, or not to Abuse: Discrimination between Consumers By Pinar Akman
  4. A Theory of Strategic Diffusion By Sanjeev Goyal; Andrea Galeotti
  5. How and when do markets tip? Lessons from the Battle of the Bund By Estelle Cantillon; Pai-Ling Yin

  1. By: Verhagen, Tibert (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Dolen, Willemijn van
    Abstract: This study is one of the few empirical works addressing the impact of offline and online store impressions on consumer online purchase intentions. Building upon the literature on store image and consumer online purchasing, we propose positive effects of online store image and suggest mixed influences of offline store image perceptions. Drawing on a sample of 630 customers of one of the largest music retail stores in the Netherlands, hypotheses are tested. The empirical results clearly support the assumed positive effect of online store image, and confirm that the influence of offline store image on online purchase intentions can be positive as well negative. We discuss the implications of our research, and conclude with directions for further research.
    Keywords: Online store image; Offline store image; Online purchase intention; Clicks-and-bricks; Multi-channel
    Date: 2007
  2. By: Singer, Bas P. (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Bossink, Bart A.G.; Van de Putte, J.M.
    Abstract: Purpose. The purpose of his paper is to investigate how organisations use a corporate real estate strategy to support their competitive strategy. It provides a theoretical and empirical overview and analysis of effective combinations of firms' real estate- and competitive strategies. Design/methodology/approach. The paper constructs a model that integrates three real estate strategies and three types of competitive strategies. Case studies in ten multinational firms in the Netherlands apply the model, and describe and analyse the combinations of the firms' real estate- and competitive strategies. Findings. A standardisation real estate strategy supports all three competitive strategies: lowest costs, differentiation, and focus. A value-based real estate strategy supports a competitive strategy of differentiation and differentiation-focus, and does not contribute to a competitive strategy of lowest costs, or lowest costs-focus. Finally, an incremental real estate strategy is ambiguous, and does not support any of the three competitive strategies. Originality/value – The paper constructs a literature-based model that combines real estate strategy and competitive strategy. It applies the model in a study of ten cases. Practitioners can use the model to analyse and reconsider the combination of their organisation's real estate strategy and competitive strategy. Academics can use the qualitative research results to design further research that qualifies and quantifies the relationship between various elements of real estate- and competitive strategy.
    Keywords: Corporate real estate; Real estate strategy; Corporate strategy; Competitive strategy
    Date: 2007
  3. By: Pinar Akman (Centre for Competition Policy, University of East Anglia)
    Abstract: This paper questions whether discrimination between consumers by a dominant undertaking can and should constitute an abuse of a dominant position under Article 82EC. By finding that it can, the paper challenges the traditional interpretation of the discrimination ban under that provision, namely that discrimination constitutes abuse only when directed against the intermediate customers of the dominant undertaking. As such, the paper seeks to clarify the scope of Article 82EC as regards discrimination, and elaborate on whether discrimination between consumers should be abusive. This is done from both a law and an economics perspective, in order to put forward a proposal to ensure that competition law does not prohibit discrimination where economics finds it potentiall welfare enhancing.
    Keywords: Abuse of a dominant position, (price) discrimination, consumer welfare
    JEL: K21
    Date: 2006–11
  4. By: Sanjeev Goyal (University of Cambridge); Andrea Galeotti (University of Essex)
    Abstract: The important role of friends, neighbors and colleagues in shaping individual choices has been brought out in a number of studies over the years. The presence of significant ‘local’ influence in shaping individual behavior suggests that firms, governments and developmental agencies should explicitly incorporate it in the design of their marketing and developmental strategies. This paper develops a framework for the study of optimal strategies in the presence of social interaction. We focus on the case of a single player who exerts costly effort to get a set of individuals – engaged in social interaction – to choose a certain action. Our formulation allows for different types of social interaction (ranging from sharing of information to direct adoption externalities) and also allows for the player to have incomplete information concerning the connections among individuals. The analysis starts by showing that incorporating information on social interaction can have large effects on the profits of a player. We then show that an increase in the level and dispersion of social interaction can raise or lower the optimal strategy and profits of the player, depending on the content of the interaction. We then study the value of social network information for the player and find that it depends on the dispersion in social connections. The economic interest of these results is illustrated via a discussion of two economic applications: advertising in the presence of word of mouth communication and seeding a network.
    Keywords: Social Interaction, Seeding the Network, Word of Mouth Communication, Diffusion Strategy
    JEL: D8 L15
    Date: 2007–06
  5. By: Estelle Cantillon (FNRS, ECARES and CEPR, Université Libre de Bruxelles, CP 114, 50, Avenue F.D. Roosevelt, 1050 Brussels, Belgium.); Pai-Ling Yin (Harvard Business School, Soldiers Field Boston, Massachusetts 02163, USA.)
    Abstract: In a famous episode of financial history which lasted over eight years, the market for the future on the Bund moved entirely from LIFFE, a London-based derivatives exchange, to DTB, a Frankfurt-based exchange. This paper studies the determinants of the observed dynamics, using a novel panel dataset that contains individual trading firms'membership status at each exchange together with other firms characteristics, and pricing, marketing and product portfolio strategies by each exchange. Our data allows us to distinguish between different explanations for the observed phenomenon. Our results indicate that the main driver was a "market coverage" effect: thanks to the combination its electronic market structure and EU-wide access deregulation, DTB increased the relevant size of the market for exchange members and disproportionately attracted those firms who originally did not exist or used to submit their orders through a broker. Differential liquidity and product portfolio strategies by the exchanges played a secondary role. JEL Classification: G21, G28, L13, L43.
    Keywords: Exchange competition, tipping, electronic trading, open outcry, network effect, Bund, adoption cost.
    Date: 2007–06

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