nep-mkt New Economics Papers
on Marketing
Issue of 2007‒08‒14
four papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Price Discrimination and Audience Composition in Advertising-Based Broadcasting By Roberto Roson
  2. Organic food marketing and distribution in the European Union By Maurizio Canavari; Roberta Centonze; Gianluca Nigro
  3. Two plus two equals six: an alternative explanation of why so many goods prices end in nine By Nigel W. Duck
  4. The Impact of Temperature Change on Energy Demand a Dynamic Panel Analysis By Roberto Roson; Enrica de Cian; Elisa Lanzi

  1. By: Roberto Roson (Department of Economics, University Of Venice Cà Foscari)
    Abstract: Traditionally, media like TV and radio, but also the Internet, have been characterized by free access (by consumers having the necessary hardware), with services supported through advertising revenues. Profitability in these markets depends on the capability of attracting audience. Strategic choices, however, also depend on the relationship with the dual market for advertising services. In this paper, a model is introduced, which has two distinguishing features. First, the multidimensional nature of competition in media markets is acknowledged, through explicit modeling of vertical and horizontal differentiation. Second, the price of advertising depends on the expected audience composition, not simply on its magnitude. It also depends on the broadcasters' capability of effectively price-discriminate among advertising customers. It is found that market equilibria depend on a number of critical factors: the amount and type of price discrimination in advertising, the correlation between formats and audience composition, the relative profitability of the different market segments, and diseconomies of scale in program quality.
    Keywords: Advertising, Media Industries, Broadcasting, Price Discrimination, Television, Radio, Differentiation..
    JEL: L82 M37
    Date: 2007
  2. By: Maurizio Canavari (Alma Mater Studiorum University of Bologna); Roberta Centonze (Alma Mater Studiorum University of Bologna); Gianluca Nigro (Alma Mater Studiorum University of Bologna)
    Abstract: The paper discusses the European organic agricultural sector from a socio-economical point of view and from a EU perspective. In the 1990s organic agriculture has known a strong development and today it is considered as a stable sector and with a certain economic importance inside agricultural sector. If originally organic food was the result of an ideological choice and was set inside the alternative culture in opposition to current models of economic development and social organisation, today it has the feature of an entrepreneurial phenomenon, belonging to a life style and to a finally acknowledged cultural model which is able to attract human and financial resources on its own, to produce profit and to satisfy a steadily increasing market. A description of the data obtained by the main available sources on organic food markets in Europe is provided, trying to analyse the present scenario for organic agriculture with the lenses of the 4Ps marketing management paradigm. The analysis may be useful to shed light on the several facets of the organic sector in Europe, and as a basis for further studies on the topic.
    Keywords: organic food, distribution, marketing, communication, brand
    JEL: Q13 Q17
    Date: 2007–01
  3. By: Nigel W. Duck
    Abstract: The prevalence of prices ending in 99 cents is explained as the result of rational consumers rounding prices up. Monopolists are shown to be harmed by this practice whereas consumers may gain. The model is compared with two other models: Basu's (1997) model and one which assumes consumers round prices down.
    Keywords: Consumer rationality, price perception, pricing
  4. By: Roberto Roson (Department of Economics, University Of Venice Cà Foscari); Enrica de Cian (FEEM; Department of Economics, University Of Venice Cà Foscari); Elisa Lanzi (FEEM)
    Abstract: This paper presents an empirical study of energy demand, in which demand for a series of energy goods (Gas, Oil Products, Coal, Electricity) is expressed as a function of various factors, including temperature. Parameter values are estimated econometrically, using a dynamic panel data approach. Unlike previous studies in this field, the data sample has a global coverage, and special emphasis is given to the dynamic nature of demand, as well as to interactions between income levels and sensitivity to temperature variations. These features make the model results especially valuable in the analysis of climate change impacts. Results are interpreted in terms of derived demand for heating and cooling. Non-linearities and discontinuities emerge, making necessary to distinguish between different countries, seasons, and energy sources. Short- and long-run temperature elasticities of demand are estimated.
    Keywords: Advertising, Media Industries, Broadcasting, Price Discrimination, Television, Radio, Differentiation..
    JEL: L82 M37
    Date: 2007

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