nep-mkt New Economics Papers
on Marketing
Issue of 2008‒01‒19
eight papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Decision making and brand choice by older consumers By Laurent, Gilles
  2. Price Discrimination Bans on Dominant Firms By Bouckaert, J.M.C.; Degryse, H.A.; Dijk, T. van
  3. The value of Sainsbury's sales data in assessing the impact of self-service methods on food retailing in postwar Britain By Bridget Williams
  4. The Effect of Expertise on the Relation between Implicit and Explicit Attitude Measures:An formation Availability/Accessibility Perspective By Czellar, Sandor; Luna, David
  5. Competition on Common Value Markets with Naive Traders - A Theoretical and Experimental Analysis By Nadine Chlaß; Werner Güth
  6. Mr Drage, Mr Everyman, and the creation of a mass market for domestic furniture in interwar Britain By Peter Scott
  7. Heterogeneity in consumer demands and the income effect: evidence from panel data By Mette Christensen
  8. And the Oscar goes to ..... Peeeeedrooooo! By Henry Aray; Luis Manuel García

  1. By: Laurent, Gilles
    Abstract: Older adults constitute a rapidly growing demographic segment, but stereotypes persist about their consumer behavior. Thus, a more considered understanding of age-associated changes in decision making and choices is required. The authors's underlying theoretical model suggests that age-associated changes in cognition, affect, and goals interact to differentiate older consumers’ decision-making processes, brand choices, and habits from those of younger adults. They first review literature on stereotypes about the elderly and then turn to an analysis of age differences in the inputs (cognition, affect, and goals) and outputs (decisions, brand choices, and habits) of the choice process.
    Keywords: older consumers; decision making; choice
    JEL: D11 M31
    Date: 2007–10–01
  2. By: Bouckaert, J.M.C.; Degryse, H.A.; Dijk, T. van (Tilburg University, Center for Economic Research)
    Abstract: Competition authorities and regulatory agencies sometimes impose pricing restrictions on firms with substantial market power ? the ?dominant? firms. We analyze the welfare effects of a ban on behaviour-based price discrimination in a two-period setting where the market displays a competitive and a sheltered segment. A ban on ?higher-prices-to-shelteredconsumers? decreases prices in the sheltered segment, relaxes competition in the competitive segment, increases the rival?s profits, and may harm the dominant firm?s profits. We show that a ban on ?higher-prices-to-sheltered-consumers? increases the dominant firm?s share of the first-period market. A ban on ?lower-prices-to-rival?s-customers? decreases prices in the competitive segment, lowers the rival?s profits, and augments the consumer surplus. In particular, while second-period competition is relaxed by a ban on ?lower-prices-to-rival?scustomers?, first-period competition is intensified substantially, which leads to lower prices ?on-average? over the two periods. Our findings indicate that a dynamic two-period analysis may lead to conclusions opposite to those drawn from a static one-period analysis.
    Keywords: dominant firms;price discrimination;competition policy;regulation.
    JEL: D11
    Date: 2008
  3. By: Bridget Williams
    Date: 2007
  4. By: Czellar, Sandor; Luna, David
    Abstract: In this paper, three experiments investigate the role of expertise as a moderator of the relationship between implicit and explicit measures of attitudes
    Keywords: object knowledge and expertise; attitude measurement; implicit measures of attitudes; Implicit Association Test
    JEL: M31
    Date: 2007–11–10
  5. By: Nadine Chlaß (Max Planck Institute of Economics, Jena, Germany); Werner Güth (Max Planck Institute of Economics, Jena, Germany.)
    Abstract: Theoretically and experimentally, we generalize the analysis of acquiring a company (Samuelson and Bazerman 1985) by allowing for competition of both, buyers and sellers. Naivety of both is related to the idea that higher prices exclude worse qualities. While competition of naive buyers increases prices, competition of naive sellers promotes effciency enhancing trade. Our predictions are tested experimentally.
    Keywords: incomplete information, common value auction, experiment
    JEL: D01 D42 D43 D44 D61 D82 L13 L15
    Date: 2007–12–20
  6. By: Peter Scott (Centre for International Business History, University of Reading)
    Abstract: This paper examines strategies used by durable goods retailers to create a mass market in interwar Britain, via a case-study of domestic furniture. Interwar demand for new furniture witnessed particularly rapid growth - mainly owing to the extension of the market to lower-income groups. A number of innovative national retailers eveloped liberal HP facilities to bring furniture within the economic reach of these groups, while sophisticated national advertising campaigns were used to both legitimise buying furniture on HP and project furnishing by this means as key to achieving the type of aspriational lifestyles being promulgated in the popular media.
    Date: 2007
  7. By: Mette Christensen (Institute for Fiscal Studies and University of Manchester)
    Abstract: <p>All micro studies of demand are based on using time series cross sectional data. Because in such data each household is only observed once, it is only under strong identifying restrictions that one can interpret the coefficients on consumer behavior. For example, if tastes are correlated with income, the usual estimates of income elasticities from cross sectional data are biased. In contrast, panel data allows identification of the coefficients on consumer behavior in the presence of unobservable correlated heterogeneity. In this paper we make use of a unique Spanish panel data set on household expenditures to test whether unobservable heterogeneity in household demands (taste) is correlated with total expenditures (income). We find that tastes are indeed correlated with income for half of the goods considered.</p>
    JEL: C33 D12
    Date: 2007–09
  8. By: Henry Aray (Department of Economic Theory and Economic History, University of Granada.); Luis Manuel García (Department of Economic Theory and Economic History, University of Granada.)
    Abstract: This article analyzes the effect of awards on the Spanish motion picture industry. We are interested in how production of both com¬pletely Spanish and coproduced films react to an Oscar award. We estimate a seemingly unrelated regression model controlling for the effect of other media, changes in the legislation governing Spanish cinema and business cycles. We find positive effects among the coefficients of the variables related to the Oscar significant up to the 10% level, with the highest coefficients being for films produced by Pedro Almodovar. We carry out a battery of tests and our findings suggest that completely Spanish movie production does not react to Oscar awards. However, the production of movies in association with foreign partners (coproduction) is positively affected though the effect differs for each Oscar.
    Keywords: Movie production, SUR model, Oscar Awards.
    JEL: Z12 C11
    Date: 2008–01–14

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