nep-mkt New Economics Papers
on Marketing
Issue of 2007‒12‒08
five papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Ambiguity Aversion And The Power Of Established Brands By A. V. Muthukrishnan; Luc Wathieu
  2. Interpretation of Services Marketing Concepts By Kauppinen-Räisänen, Hannele; Grönroos, Christian; Gummerus, Johanna
  3. Le design est-il comestible ? By Gallen, C.; Sirieix, L.
  4. Comparing Organic Urban Consumers in Developing and Developed Countries: First Results in Brazil and France By Sirieix, L.; Santiago de Abreu, L.; Aico Watanabe, M.; Kledal, P.R.
  5. Spurious Complexity and Common Standards in Markets for Consumer Goods By Alexia Gaudeul; Robert Sugden

  1. By: A. V. Muthukrishnan (Hong Kong University of Science and Technology); Luc Wathieu (ESMT European School of Management and Technology)
    Abstract: This paper investigates situations where a sizeable sub-set of consumers prefer an inferior (dominated) offer made by an established brand to a superior (dominating) offer made by a less-established brand. Established brands are those for which consumers hold more confident beliefs concerning overall quality. Through a series of eight experiments, we test the hypothesis that the preference for a dominated established brand is linked to ambiguity aversion, a seemingly unrelated pattern of choice behavior between monetary gambles. We first show a correlation between ambiguity aversion and the preference for dominated established brands. We then demonstrate that the preference for established brands is enhanced when ambiguity aversion is made more salient in unrelated preceding choices. To further study the ambiguity-reducing properties of established brands, the last experiments assign brand names to monetary gambles, and it appears that (a priori unrelated) established brand names increase the likelihood of choosing ambiguous gambles. Overall, this research argues that brand equity for longstanding brands derives (at least in part) from consumers’ tendency to avoid ambiguity.
    Keywords: branding, brand choice, consumer behavior, decision making under uncertainty
    JEL: C91 D10 D80 M31
    Date: 2007–11–29
  2. By: Kauppinen-Räisänen, Hannele (Swedish School of Economics and Business Administration); Grönroos, Christian (Swedish School of Economics and Business Administration); Gummerus, Johanna (Swedish School of Economics and Business Administration)
    Abstract: Scholarly research has produced conceptual knowledge that is based on real-life marketing phenomena. An initial aim of past research has been to produce marketing knowledge as a base for efficient business operation and for the improvement of productivity. Thus, an assumption has been that the knowledge would be applied by organisations. This study focuses on understanding the use of marketing knowledge within the field of service marketing. Hence, even if marketing knowledge about service-oriented principles and marketing of services is based on empirical research, there is a lack of knowledge on how this marketing knowledge is in fact applied by businesses. The study focuses on four essential concepts of services marketing knowledge, namely service quality, servicescape, internal marketing, and augmented service offering. The research involves four case companies. Data is based on in depth interviews and questionnaire-based surveys conducted with managers, employees, and customers of these companies. All organisations were currently developing in a service-oriented and customer-oriented direction. However, we found limitations, gaps, and barriers for the implementation of service-oriented and customer-oriented principles. Hence, we argue that the organisations involved in the study exploited conceptual knowledge symbolically and conceptually, but the instrumental use of knowledge was limited. Due to the shortcomings found, we also argue that the implementation of the various practices and processes that are related to becoming service-oriented and customer-oriented has not been fully successful. Further, we have come to the conclusion that the shortcomings detected were at least in some respect related to the fact that the understanding and utilisation of conceptual knowledge of service-oriented principles and marketing of services were somewhat limited.
    Keywords: conceptual marketing knowledge; service quality; servicescape; internal marketing; augmented service offering
    Date: 2007–09–20
  3. By: Gallen, C.; Sirieix, L.
    Abstract: This article focuses on consumers' perception of design applied to food products. Two products conceived by both designers and artisans have been studied. The results show that design can generate a virtual distance between the product and consumers. Authors then suggest solutions to facilitate appropriation process of this kind of products by consumers. ...French Abstract : Cet article s'intéresse à la perception par les consommateurs du design appliqué aux produits alimentaires. L'étude portant sur deux produits conçus par des designers et des artisans montre que le design peut être source de distance perçue avec le consommateur. Des médias sont alors envisagés pour favoriser l'appropriation du produit.
    JEL: D1 D8 M31
    Date: 2007
  4. By: Sirieix, L.; Santiago de Abreu, L.; Aico Watanabe, M.; Kledal, P.R.
    Abstract: Despite numerous studies reporting on sustainable consumption or organic consumer profiles, there is a gap in thorough understanding of organic consumers in different places, since most of studies only investigate organic consumption in most developed countries. The goal of this paper is thus to compare French and Brazilian organic consumers, so as to know if people think and behave differently or similarly in different places. Individual interviews were conducted in each country, with consumers in organic producers market in Brazil, and consumers who buy organic products from farmers markets or local organic food network in France. Products were selected to cover examples of different choice situations such as imported organic products that compete with comparable products of local origin, or organic local products in supermarkets that compete with similar products from other distribution outlets. Results show common consumer concerns such as quality or personal and family health, and common preference for local and organic products but for different reasons. However, results also shed light on different patterns related to environmental concerns or commitment to supporting small or local farmers. The impacts of the findings of this study relate to a diversity of topics such as social mobilization for sustainable agriculture, local organic food networks and environmental concerns. ...French Abstract : De nombreuses recherches portent sur la consommation durable et le profil des consommateurs de produits biologiques, mais ces recherches portent sur la consommation dans les pays développés, et ne permettent pas de savoir s'il existe des différences de consommation entre pays développés et pays en développement. Le but de cet article est de comparer le comportement de consommateurs de produits biologiques en France et au Brésil, sur la base d'entretiens individuels permettant de comparer plusieurs situations de choix : produits biologiques importés en concurrence avec des produits locaux comparables, produits biologiques locaux disponibles en supermarché ou d'en d'autres circuits de distribution,... Les résultats mettent en évidence des attentes communes, comme la qualité ou la santé, et des préférences partagées pour les produits biologiques et locaux, mais pour des raisons différentes dans les deux échantillons. Les résultats montrent également que l'importance accordée aux préoccupations environnementales et au soutien aux petits producteurs locaux n'est pas la même dans les deux échantillons. Cette recherche conduit à des pistes de réflexion portant sur la mobilisation des consommateurs pour la consommation durable, les réseaux de production et consommation de produits biologiques et les préoccupations environnementales des consommateurs.
    JEL: D1 D8 M31 Q01
    Date: 2007
  5. By: Alexia Gaudeul (School of Economics and Centre for Competition Policy, University of East Anglia); Robert Sugden (School of Economics and Centre for Competition Policy, University of East Anglia)
    Abstract: Behavioural and industrial economists have argued that, because of cognitive limitations, consumers are liable to make sub-optimal choices in complex decision problems. Firms can exploit these limitations by introducing spurious complexity into tariff structures, weakening price competition. This paper models a countervailing force. Consumers’ choice problems are simplified if competing firms follow common conventions about tariff structures. Because such a ‘common standard’ promotes price competition, a firm’s use of it signals that its products offer value for money. If consumers recognize this effect, there can be a stable equilibrium in which firms use common standards and set competitive prices.
    Keywords: decision-making, naïve consumers, savvy consumers, price competition, common standard effect, cognitive limitations.
    JEL: D83 L13 L15 L51
    Date: 2007–11

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