nep-mkt New Economics Papers
on Marketing
Issue of 2008‒03‒25
fourteen papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Value Creation in Marketing: Can Sales-Turnover turn to be a Competitive Advantage to the Marketer and Customer? By Md.Bakhtiar Rana, Saeed Alamgir Jafar, Shah Md. Al-Emran Sarker
  3. Prominence and Consumer Search By Mark Armstrong; John Vickers; Jidong Zhou
  4. Electronics to Mobile Commerce By waqar ahmed, shaikh
  5. Does Mass-media Fuel, and Easy Credit Facilitate, Impulse Buys? By Pasi Huovinen; Petri Rouvinen
  6. The food retail revolution in poor countries: Is it coming or is it over? Evidence from Madagascar By Minten, Bart
  7. Determinants of smallholder commercialization of food crops: Theory and evidence from Ethiopia By Pender, John; Alemu, Dawit
  8. Supermarket purchases and the dietary patterns of households in Guatemala: By Asfaw, Abay
  9. La qualité de l'interactivité dans la communication du service client sur les sites de banques : du courriel au Web 2.0 By NOTEBAERT, Jean-François; ASSADI, Djamchid; ATTUEL-MENDES, Laurence
  10. The rise of supermarkets and their development implications: International experience relevant for India By Reardon, Thomas; Gulati, Ashok
  11. The Effect of Mergers on Consumer Prices: Evidence from Five Selected Case Studies By Orley Ashenfelter; Daniel Hosken
  12. Web-based Corporate Reporting in Bangladesh:An Exploratory Study By Dutta, Probal; Bose, Sudipta
  13. Bargaining Between Retailers and their Suppliers By Howard Smith; John Thanassoulis
  14. Does Sex Sell? A Look at the Effects of Sex and Violence on Motion Picture Revenues By David M. Switzer; David M. Lang

  1. By: Md.Bakhtiar Rana, Saeed Alamgir Jafar, Shah Md. Al-Emran Sarker (Jagannath University, Dhaka; American International University-Bangladesh (AIUB); ASA University, Dhaka)
    Abstract: Doing business based on value delivered gives companies the means to get an equitable return for their efforts. Once markers/suppliers truly understand value, they will be able to realize the benefits of measuring and monitoring it for their customers. In this highly competitive circumstance all the firms regardless of the local or multinational tend to focus on value creation in marketing, by any means, in order to make their customers satisfied. Value is usually made with a target to satisfy the ultimate customer, but value creation in sales-turnover also affects the channel members and cost function, as a result impacts on the volume of sales and customer satisfaction as well. This formulation integrates value management, brand management, and relationship management within a customer-centered focus. Companies can decide which driver(s) strengthen for the best payoff. In this paper an effort has been made to develop an integrated value model composed of different strategies with different value concept, which ultimately impact on the sales turnover and thus create a value throughout the marketing functions and achieve its ultimate target. The paper moves step by step, from discussion of the concepts evolved in relation to value creation in marketing, then induction and development of the conceptual value creation model with special focus on the minimization of duration of the Sales-Turnover for competitive advantage vis-à-vis value creation for consumers. Finally, a rigorous theoretical analysis is given with an experimentation of the value model on a company- Abul Khair Co. Ltd.- partially practicing this concept in their marketing functions. This inductive model can be a solid basis for further research of strategic marketing application.
    Date: 2008–03
  2. By: Rabontu, Cecilia Irina; Boncea, Amelia Georgiana
    Abstract: The essential component of human behavior, the consumer’s behavior restrictively, reflects people’s conduct when it comes to buying and / or consuming material goods and services. At large, it comprises the entire conduct of the final user of material and immaterial goods. The study of the behavior of the consumer is vital for an enterprise in the motivation of the consequences that it carries along regarding all the decisions of marketing : the positioning of the brands, the segmentation of the markets, the development of new products, advertising strategies of distribution etc. The analysis of the consumer’s behavior, because of the fundamentally different nature of the acts and processes of decision that compose it, is characterized by its multidisciplinary origin. Thus, economy, such as psychology, sociology, anthropology permitted the laying of the conceptual foundations of the actual knowledge in this domain. Even though the interdisciplinary character of the consumer’s behavior investigations is recognized, there are, however, numerous points of view in the specialty literature that plead for the autonomization of this domain. This thing doesn’t impose though its separation from the marketing studies.
    Keywords: analysis of the consumer’s behavior;advertising strategies ;positioning of the brands
    JEL: L20
    Date: 2007–11
  3. By: Mark Armstrong; John Vickers; Jidong Zhou
    Abstract: This paper examines the implications of "prominence" in search markets. We model prominence by supposing that the prominent firm will be sampled first by all consumers. If there are no systematic quality differences among firms, we find that the prominent firm will charge a lower price than its non-prominent rivals. The impact of making a firm prominent is that it will typically lead to higher industry profit but lower consumer surplus and welfare. The model is extended by introducing heterogeneous product qualities, in which case the firm with the highest-quality product has the greatest incentive to become prominent, and making it prominent will boost industry profit, consumer surplus and welfare.
    Keywords: Consumer Search, Marketing, Prominent Display, Product Differentiation
    JEL: D43 D83 L13
    Date: 2008
  4. By: waqar ahmed, shaikh
    Abstract: “Mobile commerce, or m-commerce, refers to the use of wireless digital devices to enable transactions on the Web.”[1] Mobile Commerce is on a growth track. It is gaining increasing acceptance amongst various sections of the society. The need for mobility seems to be a primary driving force behind M-Commerce applications such as Mobile Banking, Mobile Entertainment and Mobile Marketing etc. A major role is thereby played by the ever-increasing convergence of computers and mobile telecommunication devices e.g. cell phones. This article undertakes a thorough examination of the conceptual background and existing regulatory framework of this relatively new business field, in order to provide a systematic and comprehensive understanding of M-Commerce, including its utilities for both consumers and service-providers, so as to make them aware of the new business opportunities arising out of this convergence.
    Keywords: M-commerce; mobile banking; mobile marketing; mobile entertainment.
    JEL: L81
    Date: 2007–04–31
  5. By: Pasi Huovinen; Petri Rouvinen
    Abstract: ABSTRACT : This paper studies whether exposure to mass media and liking advertising are associated with an increased impulse buy tendency, and whether the availability of a credit card acts as a facilitating stimulus. It is found that impulse buys are positively associated with exposure to commercial television, but not to other forms of mass media. For females, liking advertising in general is positively associated with impulse buying; for males, having a preference for informative advertising is negatively associated with impulse buying. For both, credit card use facilitates the behavior. Besides being robust and statistically significant, these effects are qualitatively quite large.
    Keywords: buying behavior, impulsiveness, mass media, advertising, credit cards
    JEL: D12 E21 G21 L82 M37
    Date: 2008–03–14
  6. 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
  7. By: Pender, John; Alemu, Dawit
    Abstract: "In this paper, we develop a theoretical farm household model of food crop production and marketing decisions, derive testable hypotheses concerning the determinants of these decisions, and test these hypotheses, using data on cereal production and marketing collected from a nationally representative survey of 7,186 farm households in Ethiopia. Focusing on production and marketing decisions for teff and maize, the two most important crops in Ethiopia, we find that most producers of these crops are either autarkic or net buyers (especially for maize) and that net buyers and autarkic households are poorer in many respects than net sellers. This implies that interventions to increase cereal productivity will favorably affect distribution for most producers. The econometric analysis shows that increasing production of teff and maize is the most important factor contributing to increased sales, and that increased smallholder access to roads, land, livestock, farm equipment, and traders is key to enabling increased smallholder production and commercialization of these crops." from Authors' Abstract
    Keywords: Smallholder production, Small farmers, household consumption, Market access, Commercial behavior, Market participation, Cereal crops,
    Date: 2007
  8. By: Asfaw, Abay
    Abstract: "Very limited empirical analyses are done on evaluating how changes in the retail environment affect diet and health status of consumers, especially in developing countries. The major objective of this study is to shed some light on some of these neglected but crucial issues. The study examines the impact of supermarket purchases on dietary practices (defined as the calorie share of different food groups) of Guatemalan households using the 2000 Guatemalan household survey. I use an instrumental variable method to take into account the potential endogeneity of the supermarket-purchase variable in the calorie share equations.... The results of the study reveal that supermarket purchases increase the share that highly and partially processed food items, such as pastries, cookies, crackers, chocolate, ice cream, and so forth, make of total calories, at the expense of staple food items such as corn and beans. Since most processed foods contain disproportionately high amounts of added fat, sugar, and salt, and since supermarkets are expanding rapidly, different policy measures should be developed to ensure that supermarkets have a "healthier" impact on diets." from Authors' Abstract
    Keywords: Supermarkets, Health and nutrition, Calorie share, Diet quality, Staple foods, Household behavior, Processed foods, Energy dense foods, Energy dilute foods, Instrumental variable method,
    Date: 2007
  9. By: NOTEBAERT, Jean-François (LEG-CERMAB - CNRS - IAE - Université de Bourgogne); ASSADI, Djamchid (Département Marketing - CEREN - Groupe ESC Dijon Bourgogne); ATTUEL-MENDES, Laurence (Département Gestion Droit Finance - Groupe ESC Dijon Bourgogne)
    Date: 2008–02
  10. By: Reardon, Thomas; Gulati, Ashok
    Abstract: "The Indian Council for Research on International Economic Relations (ICRIER) was invited by the Indian Ministry of Commerce and Industry to conduct a study titled “The Impact of Organized Retailing on the Unorganized Retail Sector.” Because organized retail in India is still in its infancy, it was deemed critical to look at the experience of other countries, especially developing ones. Thus, ICRIER sought the assistance of Dr. Thomas Reardon and Dr. Ashok Gulati, co-directors of Markets in Asia, a joint program of the International Food Policy Research Institute (IFPRI) and Michigan State University. ICRIER asked Reardon and Gulati to help research and report on the international experiences in the growth and expansion of modern retailing in developed and developing countries and the implications for India. This report is a contribution to that effort. This paper focuses on the emergence of modern retailing with respect to food and what implications it can have for various stakeholders in the food supply chain. While we briefly review the US and European experience, we focus on the developing countries of Latin America and East Asia (including China), where the supermarket revolution started in the early to mid-1990s. We looked at the patterns of the diffusion process in modern retailing in terms of “waves” that go from country to country, and within a country from first-tier cities to second-tier and then third-tier cities, and from processed to semiprocessed to fresh products. We also treat the challenges and opportunities that modern retailing has posed for various stakeholders in the supply chains, especially for traditional retailers, farmers, and consumers. We also looked at several instances when governments helped small retailers or upgraded wetmarkets by (1) establishing affirmative action policies to strengthen their competitiveness so they could also participate effectively in the transition to modern retailing, and (2) providing compensation to help them change their lines. The paper concludes by surmising what lessons other countries' experiences in the supermarket revolution have for India which is on the threshold of a major structural change in retailing. The expectations and concerns are high. Accordingly, India must form its own model of retail development to meet its priorities, learn from challenges that others have faced, and successful examples of strategies for “competitiveness with inclusiveness” among traditional retailers, wholesaler, and farmers entering an era of rapid retail transformation and concomitant food system change." from Author's Abstract
    Keywords: Supermarkets, Wholesalers, Modern retail, Small farmers, Traditional retail, Supply chains, Competitiveness, Inclusiveness,
    Date: 2008
  11. By: Orley Ashenfelter; Daniel Hosken
    Abstract: In this paper we propose a method to evaluate the effectiveness of U.S. horizontal merger policy and apply it to the study of five recent consumer product mergers. We selected the mergers from those that, from the public record, seemed to be most problematic for the antitrust agencies. Thus we estimate an upper bound on the likely price effect of completed mergers. Our study employs retail scanner data and uses familiar panel data program evaluation procedures to measure price changes. Our results indicate that four of the five mergers resulted in some increases in consumer prices, while the fifth merger had little effect.
    JEL: L1 L41 L66 L71 L73
    Date: 2008–03
  12. By: Dutta, Probal; Bose, Sudipta
    Abstract: This research paper investigates the utilization of the Internet for communicating corporate information by the listed companies of Bangladesh.The sample for the study consists of 268 companies listed on the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). Corporate websites of the sample companies were browsed by using a standard web browser for collecting data relating to corporate reporting on the Internet. The study shows that web-based corporate reporting in Bangladesh is still in its infancy. Only 38.81 percent of 268 companies have a web. A scoring scheme has been developed to measure the level of on-line corporate reporting. A wide variation in the level of on-line corporate reporting across 15 sectors has been found. The highest-ranking sector was the Banking, Leasing & Finance sector. This paper adds to the existing body of literature on on-line corporate reporting studies by exploring on-line corporate reporting practices of Bangladesh.
    Keywords: Corporate Reporting; Corporate Websites; Content Analysis; Listed Companies; Internet; Bangladesh.
    JEL: M14 M41 M1 M40 M4 M49
    Date: 2007–12
  13. By: Howard Smith; John Thanassoulis
    Abstract: This paper surveys new research concerning bargaining within supply chains and its implications for buyer power. The paper explores the implications of the research on supermarket supply chains for primary, secondary and private-label branded goods. The empirical base in support of the theories is also discussed. This paper is an initial draft of a chapter for the book "Private Labels, Brands and Competition Policy" (OUP) edited by Ariel Ezrachi and Ulf Bernitz.
    Keywords: Bargaining, Supply Chains, Supermarkets, Branded Goods, Private Label Goods, Buyer Power, Waterbed Effects
    JEL: L13 L14
    Date: 2008
  14. By: David M. Switzer; David M. Lang (Department of Economics, St. Cloud State University)
    Abstract: The Motion Picture Association of America is responsible for assigning all movies one of five movie ratings (G, PG, PG-13, R, NC-17). Previous research has found that G and PG-rated movies perform better at the box office, yet movie studios continue to make more PG-13 and R-rated movies. Other research has used data on a film’s levels of sex, violence and profanity (SVP), to explore the link between SVP, movie rating, and box office revenues. In this paper, we use a more recent data set and include additional variables to account for movie quality to further explore this relationship. We investigate the issue of how the amount of SVP has changed in the last fifteen years. We also use theater-level data for a major Midwestern theater chain to extend our analysis beyond total box office revenues, examining the effects on revenues in four ticket categories: adult, child, senior citizen, and student. Finally, we explore the difference between foreign and domestic box office responses to SVP levels and suggest that there is a justifiable reason why movie studios continue to produce far more PG-13 and R movies than G and PG movies.
    Keywords: motion pictures, movies, violence, sex
    JEL: L82 Z11
    Date: 2007–01

This nep-mkt issue is ©2008 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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