nep-mkt New Economics Papers
on Marketing
Issue of 2008‒04‒21
seven papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. An Exploratory Study on the Level of Trust towards Online Retailers among Consumers in the United Kingdom and Malaysia By Nasir, Rosniwati; Ponnusamy, Vanitha; Wazeer, Mohd Wazni
  2. Mental Accounting and Small Windfalls: Evidence from an Online Grocer By Katherine L. Milkman; John Leonard Beshears; Todd Rogers; Max H. Bazerman
  3. Salesperson’s Customer Orientation: A Reconceptualization and a New Definition By Singh Ramendra; Koshy Abraham
  4. Information Revelation in an Online Auction with Common Values By Sascha Füllbrunn
  5. Price Skewness and Competition in Multi-Sided Markets By JULLIEN, Bruno
  6. Product Differentiation and the Equilibrium Structure of the Manufacturer-Retailer Relationship By Jerzy Mycielski; Yohanes Riyanto; Filip Wuyts
  7. Input Pricing in a Model with Upstream and Downstream Product Innovation By EL ELJ, Moez

  1. By: Nasir, Rosniwati; Ponnusamy, Vanitha; Wazeer, Mohd Wazni
    Abstract: This study aims to investigate the extant level of trust towards online retailers among consumers in two different geographical and cultural locations – UK and Malaysia based on Michell’s et al. trust model. The objectives of this study are: 1. To identify the predictive variables of customers’ trust towards online retailers 2. To ascertain the extent of the consumer trust variable as being the essential element of online shopping 3. To analyse the differences in perception of online trust between consumers in the United Kingdom and Malaysia The study showed that online retailers are comparatively more trusted in UK than in Malaysia indicative by the higher average levels of trust from consumers in the UK. Additionally, the UK had a higher age group in the 25 – 34 category contributing the highest average trust value compared to Malaysia’s highest average trust value found in the lower 18 – 24 age group. There were a relatively higher percentage of male users; 66 per cent and 78 per cent in the UK and Malaysia respectively. Multiple stepwise regressions were used to analyse the level of trust against the selected trust correlates.
    JEL: L14 L81 O57
    Date: 2007–12–17
  2. By: Katherine L. Milkman (Harvard Business School, Ph.D. in Information Technology and Management); John Leonard Beshears (Harvard Business School, Ph.D. in Business Economics); Todd Rogers (Harvard Business School, Ph.D. in Organizational Behavior Psychology); Max H. Bazerman (Harvard Business School, Negotiation, Organizations & Markets Unit)
    Abstract: We study the effect of small windfalls on consumer spending decisions by examining the purchasing behavior of a sample of online grocery shoppers over the course of a year. We compare the purchases customers make when redeeming a $10-off coupon they received from their online grocer with the purchases the same customers make when shopping without a coupon. Controlling for customer fixed effects and other relevant variables, we find that grocery spending increases by $1.59 with the use of a $10-off coupon. In addition, even though the receipt of a $10-off coupon does not correspond to a meaningful increase in wealth, the extra spending associated with the redemption of such a coupon is focused on "marginal" grocery items, or grocery items that a customer does not typically buy. These findings are consistent with a simple mental accounting model but are not consistent with the standard permanent income or lifecycle theory of consumption.
    Date: 2007–09
  3. By: Singh Ramendra; Koshy Abraham
    Abstract: This study critically examines the existing domains, conceptualizations and operationalizations of the salesperson’s customer orientation constructs present in the literature. The widely used Salesperson orientation-Customer orientation (SOCO) construct (its domain, definition and scale) is examined in detail, and several inconsistencies were found. We also examine other individual-level and organizational-level orientation constructs, including market orientation, in order to appropriately delineate the boundaries of the salesperson’s customer orientation construct. Based on a comprehensive review of literature on the marketing concept, and related literatures on several other relevant orientation constructs, we suggest a new definition of this mid-level construct. Not only is our new definition more encompassing (to include all activities of the salesperson related to customers, and not just their interactions with the customers) but is also more forward-looking (salesperson’s enhanced role not just as need-fulfiller, but more as customers’ value co-creator). We sincerely hope that the new definition suggested by us would encourage scale development efforts from researchers, that would aid in further reducing (if not removing)the several inconsistencies present in the literature related to salespersons’ customer orientation, and its effect on their performance and effectiveness.
    Date: 2008–04–07
  4. By: Sascha Füllbrunn (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
    Abstract: The Hard Close auction has become a familiar auction format in online markets and in a private value framework this dynamic second-price auction format has experimentally been tested in recent studies. Considering a common value framework, Bajari and Hortaçsu (2003) demonstrate that in the Hard Close auction format bidders, using a sniping strategy, do not provide information during the auction. We provide contrary results from a laboratory experiment. Bidders provide information during the bidding process, resulting in different bid functions that depend on the bidders private information rank.
    Keywords: auctions, electronic markets, experiments
    JEL: C73 C9 D44
    Date: 2008–04
  5. By: JULLIEN, Bruno
    Date: 2008–03
  6. By: Jerzy Mycielski; Yohanes Riyanto; Filip Wuyts
    Abstract: In this paper, we analyse the manufacturers' choice of vertical arrangement with retailers. We focus on two types of vertical arrangements namely exclusive dealing and exclusive territory. Both are used by manufacturers as instruments to dampen manufacturer competition. Exclusive dealing is used to avoid a head-to-head competition with other brands within a retail outlet. Thus, it restricts interbrand competition. Exclusive territory is used to eliminate intrabrand competition. Our results show that the choice of vertical arrangement depends on the degree of product substitution. When products are less subsitutable, in other words the interbrand rivalry is weak, manufacturers prefer to sell the products to a large number of competitive retailers. When the interbrand rivalry is strong, exclusive territory with exclusive dealing might be adopted by manufacturers. We derive welfare and antitrust policy implications.
    Date: 2008–03
  7. By: EL ELJ, Moez
    Abstract: In this paper, we analyze the incentives for improving-quality R&D in a two-tier marketstructure where the quality of a differentiated good depends on the specific R&D of a downstream oligopoly and the R&D of an upstream monopoly. We show that input pricing is determining for the incentives for innovation in upstream and downstream industry. Fixed price agreements promote innovation in downstream and upstream industry by eliminating the opportunistic behaviour of the input supplier and are welfare enhancing. Theses agreements are all the more effective as the weight of the quality of the input in the consumer’s perception of the total quality of the final good is significant and as the goods are strongly differentiated.
    Keywords: Product Innovation; Vertical Market - Technological Spillovers - Input pricing
    JEL: L13 D43 O31
    Date: 2008–04–11

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