nep-mkt New Economics Papers
on Marketing
Issue of 2007‒12‒01
nine papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. To be or not to be consistent in brand logo changes? By Czellar, Sandor; Kocher, Bruno
  2. Pricing with Customer Recognition By Rosa Branca Esteves
  3. Das Hybride Wahlmodell und seine Anwendung im Marketing By Till Dannewald; Henning Kreis; Nadja Silberhorn
  4. Revisiting the Income Effect: Gasoline Prices and Grocery Purchases By Dora Gicheva; Justine Hastings; Sofia Villas-Boas
  5. Farmer groups enterprises and the marketing of staple food commodities in Africa: By Coulter, Jonathan
  6. Net Neutrality on the Internet: A Two-sided Market Analysis By Nicholas Economides; Joacim Tåg
  7. Economics for marketing revisited By Ana Isabel Costa; Cesaltina Pires
  8. Consumers and Food Miles By Sirieix, L.; Grolleau, G.; Schaer, B.
  9. Collective action and marketing of underutilized plant species: the case of minor millets in Kolli Hills, Tamil Nadu, India By Gruere, Guillaume P.; Nagarajan, Latha; King, E.D.I. Oliver

  1. By: Czellar, Sandor; Kocher, Bruno
    Abstract: This paper is an investigation into whether and under which conditions consistency between brand name and logo may positively influence consumer attitudes toward brands through three studies.
    Keywords: brand name; logo; consumer attitude; communication
    JEL: D11 M31 M37
    Date: 2007–11–01
  2. By: Rosa Branca Esteves (Universidade do Minho - NIPE)
    Abstract: This article studies the dynamic effects of behaviour-base price discrimination and customer recognition in a duopolistic market where the distribution of consumers' preferences is discrete. In the static and firs-period equilibrium firms choose prices with mixed strategies. When price discrimination is allowed, forward-looking firms have an incentive to avoid customer recognition, thus the probability that both will have positive first-period sales decreases as they become more patient. Furthermore, an asymmetric equilibrium sometimes exists, yielding a 100-0 division of the first-period sales. As a whole, price discrimination is bad for profits but good for consumer surplus and welfare.
    Date: 2007
  3. By: Till Dannewald; Henning Kreis; Nadja Silberhorn
    Abstract: Traditional choice models assume that observable behavior results from an unspecified evaluation process of the observed individual. When it comes to the revelation of this process mere choice models rapidly meet their boundaries, as psychological factors (e.g., consumers’ perception or attitudes towards products) are not directly measurable variables and therefore cannot offhand be integrated within the model structure. The causal-analytic approach offers the possibility to specify not directly measurable factors as latent variables, and can thus reasonable supplement choice models. So far, methodological approaches investigating latent variables, and traditional choice models are perceived and applied independently of one another. In this paper the possibilities of an integration of latent variables into traditional choice models is pointed out, and an introduction into the modeling of hybrid choice models is provided. Furthermore, potential areas of application in marketing research are outlined.
    Keywords: Hybrid choice model, latent variables, causal model, choice model
    JEL: M30 C51 C10
    Date: 2007–11
  4. By: Dora Gicheva; Justine Hastings; Sofia Villas-Boas
    Abstract: This paper examines the importance of income effects in purchase decisions for every-day products by analyzing the effect of gasoline prices on grocery expenditures. Using detailed scanner data from a large grocery chain as well as data from the Consumer Expenditure Survey (CES), we show that consumers re-allocate their expenditures across and within food-consumption categories in order to offset necessary increases in gasoline expenditures when gasoline prices rise. We show that gasoline expenditures rise one-for-one with gasoline prices, consumers substitute away from food-away-from-home and towards groceries in order to partially offset their increased expenditures on gasoline, and that within grocery category, consumers substitute away from regular shelf-price products and towards promotional items in order to save money on overall grocery expenditures. On average, consumers are able to decrease the net price paid per grocery item by 5-11% in response to a 100% increase in gasoline prices. Our results show that consumers respond to permanent changes in income from gasoline prices by substituting towards lower-cost food at the grocery store and lower priced items within grocery category. The substitution away from full-priced items towards sale items has implications for microeconomic discrete-choice demand models as well as for macroeconomic inflation measures that typically do not incorporate frequently changing promotional prices.
    JEL: E21 E31 L10 L16 L81
    Date: 2007–11
  5. By: Coulter, Jonathan
    Abstract: "There are some apparently successful cases of collective marketing with staple food commodities (grains and root crops), but these are less common than cases involving higher value agricultural products. These can be attributed to the benefit/cost ratio to participants being generally higher for collective marketing of the higher-value crops. Some of the costs are ‘hidden', in the sense that they are borne by individuals in time spent in attending meetings, and not shown in the financial statements of the enterprises concerned. Examining a series of cases, the paper advocates an approach to the marketing of staples which involves analyzing the value chain and identifying those activities which on the one hand, best lend themselves to individual initiative, and those where on the other hand, group approaches are more likely to prosper. Dual purpose food marketing involving village storage in anticipation of both external market opportunities and local lean season shortages usually falls into the former category. Collective initiatives have a higher probability of success when they complement agricultural intensification and involve bulking substantial quantities of produce for quality-conscious commercial buyers. Prospects for successful collective marketing are moreover greater where there is a history of collective endeavor, where focused on simple activities like bulking and distribution of inputs, where primary groups are small and homogenous in terms of interests and objectives, where they can establish lasting relationships with strong trade counterparties, where supported by effective training (especially re attitudes, numeracy, and business skills), where they can access effectively managed storage and inventory credit services, and where there is framework of law enforcement. The immediate poverty alleviation and programmatic priorities of funding agencies often undermine the effectiveness of promotional activities in support of collective marketing. This problem may be addressed by instituting systems of independent review and peer review processes, and involving open discussion of pros and cons of individual and collective approaches." authors' abstract
    Keywords: Collective marketing, Producer organization, Staple food, Village storage, Inventory credit, Microfinance, Disbursement-driven,
    Date: 2007
  6. By: Nicholas Economides (Stern School of Business, New York University); Joacim Tåg (Swedish School of Economics and Business Administration, FDPE, and HECER)
    Abstract: We discuss the benefits of net neutrality regulation in the context of a two-sided market model in which platforms sell Internet access services to consumers and may set fees to content and applications providers “on the other side” of the Internet. When access is monopolized, we find that generally net neutrality regulation (that imposes zero fees “on the other side” of the market) increases total industry surplus compared to the fully private optimum at which the monopoly platform imposes positive fees on content and applications providers. Similarly, we find that imposing net neutrality in duopoly increases total surplus compared to duopoly competition between platforms that charge positive fees on content providers. We also discuss the incentives of duopolists to collude in setting the fees “on the other side” of the Internet while competing for Internet access customers. Additionally, we discuss how price and non-price discrimination strategies may be used once net neutrality is abolished. Finally, we discuss how the results generalize to other two-sided markets.
    Keywords: net neutrality, two-sided markets, Internet, monopoly, duopoly, regulation, discrimination
    JEL: L1 D4 L12 L13 C63 D42 D43
    Date: 2007–09
  7. By: Ana Isabel Costa (Universidade de Évora – Departamento de Gestão e Aarhus School of Business – Department of Marketing and Statistics); Cesaltina Pires (Universidade de Évora – Departamento de Gestão)
    Abstract: This paper aims to provide evidence supporting the following: that recent theoretical, empirical and methodological advances in microeconomics are decisive to the progress of marketing science. That such a notion is not yet mainstream and uncontroversial, we contend, is more due to insufficient knowledge dissemination and outdated perceptions about irreconcilable differences between economists and psychologists than to lack of intrinsic value or cognitive appeal. Evidence is provided by describing these advances in a concise manner, showing how they can contribute to tackle complex marketing issues and providing examples from published matter in which this contribution already takes place.
    Keywords: Marketing Science, Economic Psychology, Behavioral Economics, Experimental Economics
    JEL: M31 A11
    Date: 2007
  8. By: Sirieix, L.; Grolleau, G.; Schaer, B.
    Abstract: Previous research has extensively studied environmental implications of conventional and globalized food supply chain. Local food supply chains are supposed to reduce the environmental impacts of "food miles", the distance that foodstuff travels between the production location and the consumption marketplace. However, if researchers, environmental decision-makers and activists are convinced of the importance of 'food miles', there is a lack of understanding about whether and how end consumers perceive food miles. This paper therefore fills this gap by investigating the perceptions of food miles by French consumers. The first section explores the different types of distances between food and consumers. The second section presents the results of a qualitative study conducted in France. Two sessions of focus groups were held to better understand consumers' perceptions of food miles. Results show that most consumers are not aware of food miles. Focus groups were followed by individual interviews with the particular group of local organic food consumers, supposed to be more environmentally concerned than others. Again, results show that most consumers buy and consume local food for other reasons than reducing food miles. The third section deals with the reasons why consumers do not seem concerned by food miles, and discusses the concepts of "bliss ignorance", perceived efficiency, and social dilemmas. ...French Abstract : Les études sur les conséquences de la globalisation des filières agro-alimentaires sur l'environnement se multiplient, et les réseaux alternatifs locaux ayant pour but de réduire les intermédiaires entre les producteurs et les consommateurs sont présentés comme permettant un retour à une agriculture et un système de consommation durables. Plus précisément ces réseaux ont, entre autres, pour but de réduire l'impact environnemental des "food miles", ou distance parcourue par les produits alimentaires entre le lieu de production et les lieux de consommation. Ce concept de "food miles" est utilisé comme un indicateur de développement durable et de plus en plus comme un outil de communication à destination des consommateurs. Cependant, si les chercheurs, décideurs ou activistes dans le domaine de l'environnement semblent convaincus de l'importance des "food miles", aucune étude n'a été menée afin de savoir si et comment les consommateurs perçoivent les "food miles" et sont susceptibles d'en tenir compte dans leur processus de choix des produits. C'est donc l'objet de cet article, qui s'attache à mettre en évidence les perceptions des food miles par les consommateurs en France grâce à une étude qualitative. La première partie présente les différents types de distance perçue entre les consommateurs et les produits alimentaires. Cette distance perçue peut favoriser un certain désintérêt de la part des consommateurs vis à vis des produits alimentaires et de la façon dont ils sont produits ; à l'opposé elle peut être à l'origine de préoccupations croissantes -environnementales, sociales ou plus individuelles telles que les préoccupations santé- et expliquer le besoin de re-créer des liens perdus avec les produits et les producteurs.
    JEL: D1 D8 M31 Q01
    Date: 2007
  9. By: Gruere, Guillaume P.; Nagarajan, Latha; King, E.D.I. Oliver
    Abstract: "Minor millets are examples of underutilized plant species, being locally important but rarely traded internationally with an unexploited economic potential. In the Kolli hills of Tamil Nadu, India, a genetically diverse pool of minor millet varieties are grown by the tribal farming communities to meet their subsistence food needs. Most of these minor crops were not traded outside the farming community. Despite a consumption preference among the farming communities for minor millets, in the recent past the acreage under minor millet crops have declined considerably due to the availability of substitute cash crops. As a response, the M.S. Swaminathan Research Foundation (MSSRF) based in Chennai has led targeted conservation cum commercialization intervention programs over the last 7-9 years in the Kolli Hills. In this paper we provide a first evaluation of the success of marketing development for minor millets in the Kolli Hills with a specific focus on collective action and group initiatives undertaken by the women and men self-help groups organized by the concerned non-governmental organization. We analyze the key collective actions that are taking place in the minor millet marketing chain through a series of field visits and focus group discussions with the stakeholders involved. We then compare the role of collective action in this new market with the case of marketing chains for cassava and organic pineapples, two cash crops with an expanding production in Kolli Hills. Our analysis shows the critical role of collective action and group initiative as a necessary but not sufficient condition for the successful commercialization of underutilized plant species for the benefit of the poor and the conservation of agrobiodiversity." authors' abstract
    Keywords: Collective action, Underutilized species, Agricultural marketing, Agrobiodiversity,
    Date: 2007

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.
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