nep-mkt New Economics Papers
on Marketing
Issue of 2007‒12‒15
ten papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Outsourcing Salespeople in Building Arousal towards Retail Buying By Rajagopal
  2. Arousal and Merriment as Decision Drivers among Young Consumers By Rajagopal
  3. Exploring Marketing in Micro Firms By Wägar, Karolina; Björk, Peter; Ravald, Annika; West, Björn
  4. Emerging Perspectives on Self Service Technologies in Retail Banking By Rajagopal; Ananya Rajagopal
  5. Integrating latent variables in discrete choice models – How higher-order values and attitudes determine consumer choice By Dirk Temme; Marcel Paulssen; Till Dannewald
  6. E-Banking: Risk Management Practices of the Estonian Banks By Dmitri Sokolov
  7. Global-local linkages, Spillovers and Cultural Clusters: Theoretical and Empirical insights from an exploratory study of Torontos Film Cluster. By Chaminade, Cristina; Vang-Lauridsen, Jan
  8. EHS Management, sustainability reporting, marketing and Corporate Governance: Inspiring the Metals Recycling Industry By Reniers G.; Poot-Baudier V.; Thomas S.
  9. Testing the "Waterbed" Effect in Mobile Telephony By Christos Genakos; Tommaso Valletti
  10. La Responsabilidad Social Empresarial en Uruguay. La visión desde las empresas By Zuleika Ferre; Natalia Melgar; Héctor Pastori; Giorgina Piani; Máximo Rossi

  1. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: Strategy of outsourcing salespeople (sales promoters) to prospect the customers through inter-personal communication and develop pre-purchase arousal for products and services is being increasingly employed by the manufacturing and marketing firms. Sales promoters are deployed at strategic locations such as in front of malls, large self-service stores, departmental stores and traffic islands in the city. This paper attempts to analyze behavioral drivers which influence consumers’ leisure shopping behavior and measure customer value through empirical investigation in Mexico. The study reveals that sales promoters significantly stimulate interest among customers towards buying products and trigger shopping arousal. Consumers are influenced in making buying decisions by the product attractiveness and pre-purchase arousal generated by the sales promoters.
    Keywords: Outsourcing, sales promotion, consumer behavior, retailing, brand value, motivation, inter-personal communications, consumer marketing, recreational retailing, customer relations
    JEL: D10 D12 M31
    Date: 2007–12
  2. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: Arousal among young consumers plays a key role in buying decisions. One of the challenges for success in retailing is to enhance the in-store ambience to influence the young consumers for prolonged stay in the store for shopping and explore the zone of experience of new products. This paper attempts to analyze arousal and satisfaction as behavioral drivers which influence buying behavior of young consumers and measures the extent of satisfaction on purchases made through empirical investigation in Mexico. Discussions in the study are also focused on the role of in-store recreation, ambience and point of sales strategies in influencing buying behavior of young consumers.
    Keywords: Shopping behavior, store ambience, arousal, point of sales strategy, customer value, buying decision, leisure shopping, product experience, retailing, referrals
    JEL: D12 M31
    Date: 2007–12
  3. By: Wägar, Karolina (Swedish School of Economics and Business Administration); Björk, Peter (Swedish School of Economics and Business Administration); Ravald, Annika (Swedish School of Economics and Business Administration); West, Björn (Swedish School of Economics and Business Administration)
    Abstract: Purpose - The purpose of the paper is to explore the practice of marketing in micro firms. Which are the challenges micro firms encounter and how do they handle them? Methodology - The research methodology is based on the theory-in-use approach (Zaltman, Heffring & LeMasters 1982) in order to inductively explore the practice of marketing in micro firms. The empirical findings rest on ten case studies, where data has been generated through repeated interactions with each case. Findings - The empirical findings show that micro firms handle their marketing challenges in a distinctive manner, by creatively using available resources and network relations. Marketing in micro firms is largely about a long-term, gradual development of a position on the market. This process we label germinal marketing. Two key dimensions of germinal marketing were identified: earning your position and being your brand. Research limitations and implications - The findings rest on an explorative study consisting of ten cases and the general applicability of the results need to be validated by further studies. These cases are however sufficient to illuminate the need for further research into the area. Value of the paper - The value of the paper is twofold. First, it expands the theory-in-use approach, and presents a research method for successful inductive empirical studies of small firm phenomena. Secondly, the paper widens our understanding of the marketing reality and practice of micro firms, identifying new dimensions of marketing and revealing the strategic implications of ordinary business activities.
    Keywords: theory-in-use; marketing; micro firm; interactive research; germinal
    Date: 2007–10–17
  4. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México); Ananya Rajagopal (Banco Azteca, Grupo Salinas Mexico)
    Abstract: This paper attempts to critically examine the available literature on the subject, discuss a model that provides a managerial framework for analyzing the variables associated with customer value, and to identify potential research areas. The discussion draws conceptual impetus from new technologies in banking services through self service technologies in banking as a tool for optimizing profit. The discussion in the paper also analyzes the main criteria for successful internet-banking strategy and brings out benefits of e-banking from the point of view of banks, their technology and customer values and tentatively concludes that there is increasing returns to scale in the bank services in relation to the banking products, new technology and customer value.
    Keywords: Self service technology, retail banking, customer value, profit optimization
    JEL: G21 M31 O14 O33
    Date: 2007–12
  5. By: Dirk Temme; Marcel Paulssen; Till Dannewald
    Abstract: Integrated choice and latent variable (ICLV) models represent a promising new class of models which merge classic choice models with the structural equation approach (SEM) for latent variables. Despite their conceptual appeal, to date applications of ICLV models in marketing are still rare. The present study on travel mode choice clearly demonstrates the value of ICLV models to enhance understanding of choice processes. In addition to the usually studied directly observable variables such as travel time, we show how abstract motivations such as power and hedonisms as well as attitudes such as a desire for flexibility impact on travel mode choice. Further, we can show that it is possible to estimate ICLV models with the widely available structural equation modeling package Mplus. This finding is likely to encourage wider usage of this appealing model class in the marketing field.
    Keywords: Hybrid choice models; Mode choice; Values; Value-attitude hierarchy; Mplus
    JEL: C25 C51 C87 M31 R41
    Date: 2007–12
  6. By: Dmitri Sokolov (Institute of Economics at Tallinn University of Technology)
    Abstract: During the last years the development of e-banking in Estonia has been very significant. According to the report of the World Economic Forum, the Estonian IT-development has been substantial. The success of e-banking in Estonia can be compared to the corresponding success of the Nordic countries. According to the Deutsche Bank Research, around 70-80% of the Internet users in Estonia use Internet banking and in this respect, Estonia could be compared to Finland, Norway and Iceland. Despite of certain benefits, e-banking has turned out a great risk, as bank clients are expecting e-banking services to be available 24 hours a day and seven days a week. The major risks associated with e-banking are strategic, operational, legal and reputational. Security is considered the central operational risk of e-banking. Some of the specific problems cut across risk categories, e.g. breach of security allowing unauthorised access to customer information can be classified as an operational risk, but such an event also exposes the bank to legal risk and reputational risk. Customer education on security risks and precautions can play an important role for consumer protection and for limiting reputational risk. In Estonia, all commercial banks which are engaged in e-banking activities have published on their websites recommendations to potential customers on how to increase the security while making transactions in electronic environment. The Estonian Financial Supervision Authority responsible for the banking supervision has disseminated on its website a special brochure to e-banking customers on how to use the Internet bank safely. At the international level the Basel Committee on Banking Supervision (BCBS) has elaborated risk management principles for e-banking. These risk management principles fall into three broad, and often overlapping, categories: Board and Management Oversight, Security Controls and Legal and Reputational Risk Management. The research question of this paper is whether these risk management principles are implemented at the Estonian banks. In order to assess the risk management practices of the Estonian banks in the field of e-banking as well as their conformity to the BCBS guidelines, the author has prepared a questionnaire and circulated it to all banks. According to the results of the survey, the Estonian banks generally comply with all BCBS guidelines in the field of e-banking risk management.
    Keywords: e-banking, risks, risk management
    JEL: G21
    Date: 2007
  7. By: Chaminade, Cristina; Vang-Lauridsen, Jan
    Abstract: This paper illustrates the importance of global-local linkages in cultural cluster-studies by discussing the impact of Hollywoods runway productions on the indigenous film cluster in Toronto, Canada. While global-local linkages are at the forefront of the current debate in cluster studies, the discussion has not yet permeated the research on cultural clusters. The paper identifies the limitations to the dominant models, inserts global-local linkages in the literature and applies it empirically. The inclusion of the global linkages in the analysis of the Toronto film cluster provides a new insight into the current development barriers faced by the indigenous film industry. The paper suggests how Hollywoods offshoring and outsourcing activities to Toronto can be transformed into positive spillovers for the indigenous film cluster.
    JEL: O31 O32 O33 O34 O38 N5 O47 R58
    Date: 2007
  8. By: Reniers G.; Poot-Baudier V.; Thomas S.
    Abstract: Society in general has become more risk adverse and intolerant of the burden, both social and environmental, caused by industrial activities. In response to this novel perception and this changing business environment, governments and organizations are devising ways towards a more socially and ecologically responsible way of doing business that also supports the principle of sustainable development. However, sustainable development in general poses a challenge to the mindset of organizations which came about in the industrialization period of the 20th century: the performance of companies is increasingly judged by stakeholders not only by the services, products and profits they make, but also by the impacts they have on human and social well-being and on the natural environment. An ever growing body of evidence shows that companies which take a more sustainable approach enjoy substantial positive (economic) benefits (Brown, 2005). A competitive industry which is sustainable at the same time should adopt innovative business solutions that help satisfy society’s needs while optimizing the use of resources and ensuring that all steps are taken to prevent harm to human health and the environment. Moreover, it is essential to demonstrate good practice in ethical behavior, to respect the culture and rights of individuals, and to adopt the highest standards of corporate governance and accountability. In this article, we discuss the case of an imaginary company called Infinite Recycling. The company is globally active and is composed of three Business Groups. The core business of Infinite Recycling is recycling metals, metal components and materials in general. The company is committed to adopt and implement the most recent environment, safety and health standards and management systems. We investigate why and how Infinite Recycling might profit from elaborating an annual sustainability report complementary to current environment and safety reporting. The next section depicts Infinite Recycling’s business case of sustainability. Section 3 outlines the advantages for Infinite Recycling and its Business Groups in publishing a sustainability report, and section 4 describes how Infinite Recycling can improve its ecoefficiency management. Section 5 summarizes the possibility of marketing reinforcement in the recycling sector by using sustainability issues while section 6 integrates the previous ones by suggesting a framework for Sustainability Corporate Governance.Section 7 benchmarks the 2006 sustainability reports from 5 leading companies. Finally, our last section draws conclusions by offering a sustainability project fiche for our imaginary company.
    Date: 2007–11
  9. By: Christos Genakos; Tommaso Valletti
    Abstract: This paper examines the impact of regulatory intervention to cut termination rates of callsfrom fixed lines to mobile phones. Under quite general conditions of competition, theorysuggests that lower termination charges will result in higher prices for mobile subscribers, aphenomenon known as the "waterbed" effect. The waterbed effect has long beenhypothesized as a feature of many two-sided markets and especially the mobile networkindustry. Using a uniquely constructed panel of mobile operators' prices and profit marginsacross more than twenty countries over six years, we document empirically the existence andmagnitude of this effect. Our results suggest that the waterbed effect is strong, but not full.We also provide evidence that both competition and market saturation, but most importantlytheir interaction, affect the overall impact of the waterbed effect on prices.
    Keywords: telecommunications, regulation, "Waterbed" effect, two-sided markets
    JEL: D21 L51 L96
    Date: 2007–10
  10. By: Zuleika Ferre (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Natalia Melgar (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Héctor Pastori (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Giorgina Piani (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Máximo Rossi (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)
    Abstract: This paper deals with the results of the Survey of Corporate Social Responsibility (CSR_II) carried out by the Department of Economics (FCS-UDELAR) to private companies in the industry,commerce and services during the second quarter of 2007. We took into account Montevideo as well as the metropolitan area. The survey is part of a Project on Corporate Social Responsibility funded by the Sectoral Commission for Scientific Research (CSIC) and the Christian Association of Business Managers (ACDE). The main objective of this survey was to obtain objective and reliable information on the activities of corporate social responsibility conducted by the Uruguayan companies. Therefore, we included questions about the relationship of companies with their employees, customers, competitors, shareholders, community, state and the environment. Moreover, some questions allowed us to shed light about the images, views and the role of Uruguayan enterprises regarding to the activities of corporate social responsibility in Uruguay.
    Keywords: Corporate Social Responsibility, ethic
    JEL: L14 L15 M14
    Date: 2007–07

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.