nep-mkt New Economics Papers
on Marketing
Issue of 2007‒09‒16
five papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. How Will Online Affiliate Marketing Networks Impact Search Engine Rankings? By Janssen, D.; Heck, E. van
  2. The effects of competition on price dispersion in the airline industry: a panel analysis By Kris Gerardi; Adam Hale Shapiro
  3. Realizing the Gains From Trade: Export Crops, Marketing Costs, and Poverty By Jorge Balat; Irene Brambilla; Guido Porto
  4. Should Wal-Mart, Real Estate Brokers, and Banks Be in Bed Together? A Principles-Based Approach to the Issues of the Separation of Banking and Commerce By Lawrence J. White
  5. The Music Market in the Age of Download By Iacopo Grassi

  1. By: Janssen, D.; Heck, E. van (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: In online affiliate marketing networks advertising web sites offer their affiliates revenues based on provided web site traffic and associated leads and sales. Advertising web sites can have a network of thousands of affiliates providing them with web site traffic through hyperlinks on their web sites. Search engines such as Google, MSN, and Yahoo, consider hyperlinks as a proof of quality and/or reliability of the linked web sites, and therefore use them to determine the relevance of web sites with regard to search queries. In this research we investigate the potential impact of online affiliate marketing networks on the ranking of advertisers? web sites in search results. This article empirically explores how seven different affiliate marketing networks affect the rankings of the advertising web sites within web search engines. The field study followed intensively seven online affiliate marketing networks for twelve weeks after their launch. The results indicate that newly started affiliate networks effectively improve the rankings of advertising web sites in search engine results. Also, it was found that the effects of affiliate marketing networks on search engine rankings were smaller for advertising web sites operating in highly competitive markets. Another finding was that a growth in visitors coming from search engines was present as a result of the improvement of search engine rankings. Finally, the results indicate that cost-benefit metrics associated with affiliate marketing programs, such as the average marketing cost will decrease when the positive effects of affiliate marketing on search engine rankings are taken into account.
    Keywords: Online Affiliate Marketing Networks;Search Engine Rankings;Advertising;Hyperlinks;
    Date: 2007–07–03
  2. By: Kris Gerardi; Adam Hale Shapiro
    Abstract: This paper analyzes the effects of market structure on price dispersion in the airline industry, using panel data from 1993 through 2006. The results found in this paper contrast with those of Borenstein and Rose (1994), who found that price dispersion increases with competition. We find that competition has a negative effect on price dispersion, in line with the textbook treatment of price discrimination. Specifically, the effects of competition on price dispersion are most significant on routes that we identify as having consumers characterized by relatively heterogeneous elasticities of demand. On routes with a more homogenous customer base, the effects of competition on price discrimination are largely insignificant. We conclude from these results that competition acts to erode the ability of a carrier to price discriminate, resulting in reduced overall price dispersion.
    Date: 2007
  3. By: Jorge Balat; Irene Brambilla; Guido Porto
    Abstract: This paper explores the role of export costs in the process of poverty reduction in rural Africa. We claim that the marketing costs that emerge when the commercialization of export crops requires intermediaries can lead to lower participation into export cropping and, thus, to higher poverty. We test the model using data from the Uganda National Household Survey. We show that: i) farmers living in villages with fewer outlets for sales of agricultural exports are likely to be poorer than farmers residing in market-endowed villages; ii) market availability leads to increased household participation in export cropping (coffee, tea, cotton, fruits); iii) households engaged in export cropping are less likely to be poor than subsistence-based households. We conclude that the availability of markets for agricultural export crops help realize the gains from trade. This result uncovers the role of complementary factors that provide market access and reduce marketing costs as key building blocks in the link between the gains from export opportunities and the poor.
    JEL: F10 F14
    Date: 2007–09
  4. By: Lawrence J. White
    Date: 2007
  5. By: Iacopo Grassi (Università Federico II)
    Abstract: Internet, mp3 files, peer-to-peer software and digital technologies for copying have radically modified the music sector. In this paper I present a theoretical model, that investigates the consequences of the appearance of a pirate low quality good (typically a mp3 file) in the music market. In this paper I propose a model of sampling, consider the possibility that the firm modifies its business entering into the low quality segment and investigate the supposed conflict between the recording company, whose profit depends on the CD sold, and the artist, whose profits depend in part on the live performance, the demand of which can increase for the positive externality due to the illegal download of music.
    Keywords: File-sharing, Copyright, Sample Effect, Mp3, Concert
    JEL: L86
    Date: 2007–07

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