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on Marketing |
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Issue of 2008‒04‒12
seven papers chosen by Joao Carlos Correia Leitao University of the Beira Interior |
| By: | Courty, Pascal; Pagliero, Mario |
| Abstract: | Using data from a unique pricing experiment, we investigate Vickrey’s conjecture that responsive pricing can be used to smooth both predictable and unpredictable demand shocks. Our evidence shows that increasing the responsiveness of price to demand conditions reduces the magnitude of deviations in capacity utilization rates from a pre-determined target level. A 10 percent increase in price variability leads to a decrease in the variability of capacity utilization rates between 2 and 6 percent. We discuss implications for the use of demand-side incentives to deal with congestible resources. |
| Keywords: | capacity utilization; Consumer demand; price variability; responsive pricing |
| JEL: | D01 D12 L11 L86 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6662&r=mkt |
| By: | Nocke, Volker; Peitz, Martin |
| Abstract: | In an intertemporal setting in which individual uncertainty is resolved over time, advance-purchase discounts can serve to price discriminate between consumers with different expected valuations for the same product. Consumers with a high expected valuation purchase the product before learning their actual valuation at the offered advance-purchase discount; consumers with a low expected valuation will wait and purchase the good at the regular price only in the event where their realized valuation is high. We provide a necessary and sufficient condition under which the monopolist's optimal intertemporal selling policy features such advance-purchase discounts. |
| Keywords: | advance-purchase discount; demand uncertainty; intertemporal pricing; introductory offers; monopoly pricing; price discrimination |
| JEL: | D42 L12 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6664&r=mkt |
| By: | Huck, Steffen; Lünser, Gabriele; Tyran, Jean-Robert |
| Abstract: | Arguing that consumers are the carriers of firms’ reputations, we examine the role of consumer networks for trust in markets that suffer from moral hazard. When consumers are embedded in a network, they can exchange information with their neighbours about their private experiences with different sellers. We find that such information exchange fosters firms' incentives for reputation building and, thus, enhances trust and efficiency in markets. This efficiency-enhancing effect is already achieved with a rather low level of network density. |
| Keywords: | consumer network; information conditions; moral hazard; reputation; trust |
| JEL: | C72 C92 D40 L14 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6624&r=mkt |
| By: | Jozef Konings; Filip Roodhooft |
| Abstract: | E-business offers buyers and sellers a new form of communication and provides an opportunity to create new marketplaces. Theoretical studies suggest in general that the development of e-business results in higher firm performance as a result of lower search and head-to-head comparison costs. However, there are a number of recent theoretical studies, which demonstrate that the growth of e-commerce may lead to monopolistic pricing behaviour so that firms engaging in e-commerce need not perform better compared to more traditional enterprises. To date, there exists little empirical evidence on the impact of information technology on economic performance. This paper is the first that uses a large representative data set of Belgian firms to study empirically the impact of e-business on corporate performance. Our main conclusions can be summarised as follows: (1) The penetration of the Internet in Belgian firms is high, however, the use of e-business is still limited. (2) It is especially the large firms that engage in e-business and mostly in e-procurement. (3) E-business has no effect on total factor productivity in small firms, however, we find positive effects on performance of e-business in large firms. |
| Keywords: | new economy, internet, firm performance, e-procurement, e-business |
| JEL: | D0 L0 O3 M0 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces0026&r=mkt |
| By: | Dellaert, B.G.C.; Arentze, T.A.; Timmermans, H.J.P. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | Depending on the shopping context, consumers may develop different mental representations of complex shopping trip decision problems to help them interpret the decision situation that they face and evaluate alternative courses of action. To investigate these mental representations and how they vary across contexts, the authors propose a causal network structure that allows for a formal representation of how context-specific benefits requirements affect consumers’ evaluation of decision alternative attributes. They empirically test hypotheses derived from the framework, using data on consumers’ mental representations of a complex shopping trip decision problem across four shopping contexts that differ in terms of opening hour restrictions and shopping purpose, and find support for the proposed structure and hypotheses. |
| Keywords: | retailing;consumer decision-making;mental representations;context effects;shopping trip decisions |
| Date: | 2008–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765011812&r=mkt |
| By: | Kokholm, Thomas (Department of Business Studies, Aarhus School of Business) |
| Abstract: | This paper considers derivatives with payo¤s that depend on a stock index and underlying LIBOR rates. A tra¢ c light option pricing formula is derived un- der lognormality assumptions on the underlying processes. The tra¢ c light option is aimed at the Danish life and pension sector to help companies stay solvent in the tra¢ c light stress test system introduced by the Danish Financial Supervisory Authorities in 2001. Similar systems are now being implemented in several other European countries. A pricing approach for general payo¤s is presented and illustrated with simulation via the pricing of a hybrid derivative known as the EUR Sage Note. The approach can be used to price many existing structured products. |
| Keywords: | LIBOR market model; traffic light option; correlation; simulation; derivatives pricing; structured products; |
| Date: | 2008–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhb:aarbfi:2008-01&r=mkt |
| By: | Sangwan, S.; Chong, G.; Pau, L-F. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | China’s mobile communications market presents unique market challenges. With a high subscriber growth rate but polarized and stratified consumer adoption trends, an investigation into the current status of this market will improve our understanding on how adoption of mobile communications is evolving. In this descriptive paper we analyze key issues relating to market characteristics of mobile communications with an objective to better comprehend the dynamics of this largest mobile subscribers market. Using secondary data we identify mobile industry and end-user related trends to infer our conclusions for the industry. |
| Keywords: | mobile communication;mobile subscribers market;China |
| Date: | 2008–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765011762&r=mkt |