nep-mkt New Economics Papers
on Marketing
Issue of 2008‒06‒21
six papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Consumer Loyalty in the Swedish Pharmaceuticals Market By Granlund, David; Rudholm, Niklas
  2. Platform Intermediation in a Market for Differentiated Products By Andrea Galeotti; José Luis Moraga-González
  3. Shareholder Activism and the Role of Marketing: A Framework for Analyzing and Managing Investor Relations By Hoffmann Arvid O.I.; Pennings Joost M.E.
  4. Does the Quality of Store Brands Affect the Number of National Brand Suppliers? By Daunfeldt, Sven-Olov; Orth, Matilda; Rudholm, Niklas
  5. Modeling the Effectiveness of Hourly Direct-Response Radio Commercials By Kiygi Calli M.; Weverbergh M.; Franses P.H.
  6. The Impact of College Athletics on Employment in the Restaurant and Accommodations Industries By Bernard F. Lentz; David N. Laband

  1. By: Granlund, David (Department of Economics); Rudholm, Niklas (Department of Economics)
    Abstract: The purpose of this paper is to test if consumer loyalty is stronger toward brand name prharmaceutical products and branded generics as compared to "true" generics in the Swedish pharmaceutical market. The results show that consumers are equally loyal toward brand name pharmaceuticals and branded generics, while substantially less loyal toward generics. The results thus seem to give support to the idea that brand name recognition is important in creating consumer loyalty toward pharmaceutical products.
    Keywords: Brand loyalty; Branded generics; Parallel import; Generic competition
    JEL: D12 I11
    Date: 2008–06–09
  2. By: Andrea Galeotti (University of Essex, U.K.); José Luis Moraga-González (University of Groningen, Groningen, the Netherlands, and CESifo)
    Abstract: We study a two-sided market where a platform attracts firms selling differentiated products and buyers interested in those products. In the unique subgame perfect equilibrium of the game, the platform fully internalizes the network externalities present in the market and firms and consumers all participate in the platform with probability one. The monopolist intermediary extracts all the economic rents generated in the market, except when firms and consumers can trade outside the platform, in which case consumers retain part of the economic rents. The market allocation is constraint efficient in the sense that the monopoly platform does not introduce distortions over and above those arising from the market power of the differentiated product sellers. An increase in the number of retailers increases the amount of variety in the platform but at the same time increases competition. As a result, the platform lowers the firm fees and raises the consumer charges. In contrast, an increase in the extent of product differentiation raises the value of the platform for the consumers but weakens competition. In this case, the platform raises both the charge to the consumers and the fee for the firms.
    Keywords: Two-sided markets; network externalities; intermediation; advertising
    JEL: L12 L13 D42 D43
    Date: 2008–02–25
  3. By: Hoffmann Arvid O.I.; Pennings Joost M.E. (METEOR)
    Abstract: This paper proposes a conceptual framework that shows the role of (the) marketing (function) in managing investor relations. The framework complements existing literature on the marketing-finance interface and explicitly includes investor relationships as market-based assets. The framework provides (the) marketing (function) with tools to analyze and manage investor relations in order to improve companies’ market performance and increase shareholder value by lowering the costs of shareholder activism. Three real-life scenarios of shareholder activism demonstrate the implications of the framework for marketing practice.
    Keywords: Strategy;
    Date: 2008
  4. By: Daunfeldt, Sven-Olov (The Swedish Retail Institute (HUI)); Orth, Matilda (Department of Economics); Rudholm, Niklas (The Swedish Retail Institute (HUI))
    Abstract: This paper examines how the increased market shares of the store brands affect the entry and survival of national brand suppliers. The analysis is performed on monthly scanner data for a number of household- and personal-care products covering June 2001 through May 2004. An increased market share of medium-priced store brands was found to decrease the number of suppliers of national brands. However, no statistically significant impact was found of low-priced store brand market shares on the numer of national brand suppliers. It thus seems that it is mainly medium-priced store brands that compete with national brands.
    Keywords: Scanner data; household products; count data; private labels
    JEL: L13 L81
    Date: 2008–06–09
  5. By: Kiygi Calli M.; Weverbergh M.; Franses P.H.
    Abstract: The authors investigate the impact of direct-response commercials on incoming calls at a national call center. To this end, the authors analyze the data of a fast service for repairs of (parts of) a durable consumption good in Flanders, Belgium. The authors have access to data at the 15 minute interval covering 30 months in which 5172 radio commercials were broadcasted on six radio stations at various times of the day and at with differing commercial lengths. Their model is a two-level model, where the first-level estimates of the short-run and long-run effects are correlated with various aspects of the commercial in the second level. Their main conclusion is that GRPs are the key drivers of the effectiveness of commercials.
    Date: 2008–04
  6. By: Bernard F. Lentz (Drexel University); David N. Laband (Auburn University)
    Abstract: In this paper, we analyze Metropolitan and Micropolitan Statistical Area (MSA)-level data in the U.S. to examine the economic impact of college athletics. Specifically, we examine the relationship between total athletics revenues (aggregated across all colleges in an MSA) and MSA-level employment in the accommodations and food services industries. Controlling for a variety of other factors that might influence hotel/restaurant employment within an MSA, we find that below $40 million (in 2005) in college athletics revenues there is no evidence that college athletics affects MSA employment in the food services and accommodations industries. However, above $40 million we find highly significant impacts on employment in the food services and accommodations industries that climb with college sports revenue generation.
    Keywords: sports, college athletics, economic impact, food services and accommodations, tourism
    JEL: L83
    Date: 2008–06

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.
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.