nep-mkt New Economics Papers
on Marketing
Issue of 2007‒11‒17
seven papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Success Factors in Mobile Viral Marketing: A Multi-Case Study Approach By Pousttchi, Key; Wiedemann, Dietmar Georg
  2. Additive models with random scaling factors: applications to modeling price response functions By Peter Wechselberger; Stefan Lang; Winfried J. Steiner
  3. The Marginal Willingness-to-Pay for Health Related Food Characteristics By Thunström, Linda
  4. Road Pricing and Retail Revenues: Results from the Stockholm Road Pricing Trial By Daunfeldt, Sven-Olov; Rudholm, Niklas; Rämme, Ulf
  5. The food retail revolution in poor countries: is it coming or is it over? evidence from Madagascar By Minten, Bart
  6. Consumer Networks and Firm Reputation: A First Experimental Investigation By Gabriele K. Lünser; Jean-Robert Tyran
  7. Strategic Foresight in multinational enterprises – a case study on the Deutsche Telekom Laboratories By Rohrbeck, Rene; Arnold, Heinrich M.; Heuer, Jörg

  1. By: Pousttchi, Key; Wiedemann, Dietmar Georg
    Abstract: A prior study showed that mobile viral marketing is an important issue of mobile marketing. Using a multicase study research approach, we introduce a typology of four standard types of mobile viral marketing and extract eight success factors for this new form of marketing. As a final step, we structure the relationship between both, showing success factors’significance in different standard types and deriving a success factor framework. We conclude with a consideration of research implications.
    JEL: M21
    Date: 2007
  2. By: Peter Wechselberger; Stefan Lang; Winfried J. Steiner
    Abstract: We discuss inference for additive models with random scaling factors. The additive effects are of the form (1+g)f(z) where f is a nonlinear function of the continuous covariate z modeled by P(enalized)-splines and 1+g is a random scaling factor. Additionally, monotonicity constraints on the nonlinear functions are possible. Our work is motivated by the situation of a retailer analyzing the impact of price changes on a brand's sales in its orange juice product category. Relating sales to a brand's own price as well as to the prices of competing brands in the category, we estimate own- and cross-item price response functions flexibly to represent nonlinearities and irregular pricing effects in sales response. Monotonicity constraints are imposed so that a brand's own price is inversely related and the prices of competing brands are directly related to the number of items sold, as suggested by economic theory. Unobserved store-specific heterogeneity is accounted for by allowing the price response curves to vary between different stores.
    Keywords: P-splines, Monotonicity constraints, multiplicative random effects, price response, own- and cross-item price effects
    Date: 2007–10
  3. By: Thunström, Linda (The Swedish Retail Institute (HUI))
    Abstract: With food, consumers often face a trade-off between taste and nutrition. A priori, it is not obvious which would be more important to the average consumer, so it is an empirical question how consumers value food characteristics that simultaneously affect taste and nutritional value. In this paper, Swedish consumer preferences regarding food characteristics in breakfast cereals, hard bread and potato products are analyzed. In particular, the value consumers attach to fat, fibre, salt and sugar is studied, as well as the value of easily accessible nutritional information provided by a nutrition symbol. The equations estimated are derived from a hedonic price model. The price data originates from a household panel and scanner data, whereas the corresponding data on food characteristics was collected manually in supermarkets or from producers. The value consumers attach to food characteristics are found to vary by product and the results also imply that these values could be sensitive to changes in the combination of characteristics in a product.
    Keywords: hedonic pricing; willingness to pay; food characteristics
    JEL: D12 I10
    Date: 2007–11–06
  4. By: Daunfeldt, Sven-Olov (The Swedish Retail Institute); Rudholm, Niklas (The Swedish Retail Institute); Rämme, Ulf (The Swedish Retail Institute)
    Abstract: This paper studies the impact of the Stockholm road pricing trial on retail revenues. The analysis is performed using revenue data from 14 shopping malls, 9 within the tool area and 5 outside the tool area. The data also include revenue data from a sample of retail stores located along the main shopping streets in Stockholm. The results show that the Stockholm road pricing trial did not negatively affect retail revenue, neither in shopping malls nor in the sample of retail stores.
    Keywords: Road tolls; congestion fee; congestion charge; retail revenues; retail profits
    JEL: D12 H31 L81
    Date: 2007–11–06
  5. By: Minten, Bart
    Abstract: "Global retail chains are becoming increasingly dominant in the global food trade and their rise leads to dramatic impacts on agricultural supply chains and on small producers. However, the prospects and impacts of a food retail revolution in poor countries are not yet well understood. Here, we examine this question in Madagascar, a poor but stable country where global retailers have been present for over a decade. Our survey and analysis finds that while global retail chains sell better quality food, their prices are 40 to 90% higher, ceteris paribus, than those seen in traditional retail markets. In poor settings, characterized by high food price elasticities, a lack of willingness to pay for quality, and small retail margins, supermarkets appear to set prices with an eye toward maximizing profits based on price-inelastic demands for quality products from a small middle class interested in one-stop shopping. It seems unlikely that global retail chains will further increase their food retail share in such poor settings." from Authors' Abstract
    Keywords: Food retail, Supermarkets, Food quality, Poor Developing countries,
    Date: 2007
  6. By: Gabriele K. Lünser (University College London); Jean-Robert Tyran (Department of Economics, University of Copenhagen)
    Abstract: Arguing that consumers are the carriers of firms’ reputations, we examine the role of consumer networks for trust in markets that suffer from moral hazard. When consumers are embedded in a network, they can exchange information with their neighbours about their private experiences with different sellers. We find that such information exchange fosters firms' incentives for reputation building and, thus, enhances trust and efficiency in markets. This efficiency-enhancing effect is already achieved with a rather low level of network density.
    Keywords: trust; consumer networks; moral hazard; information conditions; reputation
    JEL: C72 C92 D40 L14
    Date: 2007–11
  7. By: Rohrbeck, Rene; Arnold, Heinrich M.; Heuer, Jörg
    Abstract: Strategic Foresight activities enable companies to use weak signals to identify opportunities and threats. Research on Strategic Foresight proposes different methods, discusses their implementation and gives recommendations on how to link Strategic Foresight with other functions in an organization. Based on a literature review, we define a generic framework for the management of Strategic Foresight activities on the strategic, tactical and operational level and identify and discuss actors, methods and systems of Strategic Foresight. Building on an in-depth case study of the Deutsche Telekom Laboratories we shed light on the implementation of Strategic Foresight activities. In the discussion we focus on the interaction of methods from Consumer Foresight and Technology Intelligence. Taking an example project, we explore how Strategic Foresight is used on the operational level of innovation management. We conclude that Strategic Foresight can successfully contribute to coping with uncertainty and complexity and can feed the front-end of innovation from the market (customer needs) and technology (realization opportunities) perspective.
    Keywords: strategic foresight; consumer foresight; technology foresight; technology intelligence; market foresight; trend analysis; future studies; future analysis; telecommunication industry
    JEL: M0 M19 M10
    Date: 2007–01–12

This nep-mkt issue is ©2007 by Joao Carlos Correia Leitao. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.