nep-mkt New Economics Papers
on Marketing
Issue of 2008‒08‒06
eight papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. Sustaining linkages to high value markets through collective action in Uganda: The case of the Nyabyumba potato farmers By Kaganzi, Elly; Ferris, Shaun; Barham, James; Abenakyo, Annet; Sanginga, Pascal; Njuki, Jemimah
  2. Oligopolistic Competition in Price and Quality By Andrei Dubovik; Maarten C.W. Janssen
  3. Negative Network Externalities in Two-Sided Markets: A Competition Approach By Kurucu, Gokce
  4. Measuring Service Quality: The Opinion of Europeans about Utilities By P. A. Ferrari; S. Salini
  5. Inference on Vertical Contracts between Manufacturers and Retailers Allowing for Non Linear Pricing and Resale Price Maintenance By BONNET, Céline; DUBOIS, Pierre
  6. The Internalization of Advertising Services: An Inter-IndustryAnalysis By Sharon Horsky; Steven C. Michael; Alvin J. Silk
  7. Priorities for the Italian Cultural Firms By BESANA, ANGELA
  8. Demand Side Analysis of Microlending Markets in Industrialized Countries - Evidence from Germany - By Alexander S. Kritikos; Christoph Kneiding; Claas Christian Germelmann

  1. By: Kaganzi, Elly; Ferris, Shaun; Barham, James; Abenakyo, Annet; Sanginga, Pascal; Njuki, Jemimah
    Abstract: "Uganda's rapid urbanization, particularly in the capital city Kampala, offers new market opportunities for organized farmers to supply higher value produce for emerging growth markets such as multinational supermarket chains and fast food restaurants. Higher urban incomes allow consumers to shift from small shops and street food stalls to more formalized markets and modern food restaurants. These more formal market outlets provide both food safety and greater choice of produce. Supplying these outlets offers both higher income and improved business relations for farmers, but accessing these markets also requires significant upgrading in terms of product quality, more secure supply chains, and more efficient marketing and business management. To meet these conditions, farmers need to become organized for a marketplace that requires increased levels of bonding social capital to meet upgrade conditions and strengthened bridging social capital through partnerships with service providers and market chain actors to engage with these higher value markets in a long-term manner. One farmers' association in a remote rural area in Southwestern Uganda has successfully sustained market links through sales of high quality Irish potatoes to a fast food outlet in Kampala. To meet the volumes, frequency of supply, and quality parameters demanded by their client, the farmers have had to learn a series of new skills and integrate multiple innovations at the technical, organizational, financial, and marketing levels, and meet many of the classical conditions associated with collective action based on empowerment through social and human capital development. This paper outlines how the use of collective action combined with strong leadership and an iterative market-led learning process have enabled a smallholder farmer's association to supply a perishable crop to a modern food outlet market with stringent quality parameters. Success in this market linkage was possible through effective support from both development and research providers and the strong entrepreneurial drive from the farmer association." authors' abstract
    Keywords: Marketing, Potato, High value markets, Fast food, Entrepreneurial, Social cohesion, Innovation, Quality, Competitiveness,
    Date: 2008
  2. By: Andrei Dubovik (Erasmus University Rotterdam); Maarten C.W. Janssen (University of Vienna)
    Abstract: We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in knowledge: some consumers know both the prices and quality of the products offered, some know only the prices and some know neither. We show that two types of signalling equilibria are possible. Both are characterised by dispersion and Pareto-inefficiency of the price/quality offers. But, better price/quality combinations are signalled with lower prices in one type and with higher prices in the other type.
    Keywords: oligopoly; competition; price; quality; imperfect information; signalling
    JEL: D43 D83 L13 L15
    Date: 2008–07–14
  3. By: Kurucu, Gokce
    Abstract: Consider a firm advertising in a job matching agency with the aim of employing the most qualified workers. Its chances of success would be higher for a smaller number of competitor firms advertising in the same job matching agency, i.e. How would the resulting competitive behavior among the firms which are advertising to this job matching agency affect the agency’s optimal pricing behavior? I analyze the optimal market structures and pricing strategies of a monopolist platform in a two-sided market setup in which the agents on each side prefer the platform to be less competitive on their side; that is, a market with negative intra-group network externalities. I find that the equilibrium market structure varies with the extent of negative externalities. If the market’s negative network externalities are substantial, that is, if an agent’s disutility given the size of the agent pool on his side is high (enough), then the profit-maximizing strategy for the matchmaker will be to match the highest types of one side with all of the agents on the other side, by charging a relatively high price from the former side and allowing free entrance for the agents of the latter side. However, if the network externalities on one side are not substantial, then the matchmaker will maximize profits by matching an equal number of agents from each side. This paper thus provides an explanation of the asymmetric pricing schedules in two-sided markets where the matchmaker uses a one-program pricing schedule.
    Keywords: two-sided market; externalities
    JEL: L11 D42 L12
    Date: 2007–08–30
  4. By: P. A. Ferrari (University of Milan); S. Salini (University of Milan)
    Abstract: This paper provides a comparative analysis of statistical methods to evaluate the consumer perception about the quality of Services of General Interest. The evaluation of the service quality perceived by users is usually based on Customer Satisfaction Survey data and an ex-post evaluation is then performed. Another approach, consisting in evaluating Consumers preferences, supplies an ex-ante information on Service Quality. Here, the ex-post approach is considered, two non-standard techniques - the Rasch Model and the Nonlinear Principal Component Analysis - are presented and the potential of both methods is discussed. These methods are applied on the Eurobarometer Survey data to assess the consumer satisfaction among European countries and in different years.
    Keywords: Service Quality, Eurobarometer, Non Linear Principal Component Analysis, Rasch Analysis, Conjoint Analysis
    JEL: C33 C35 C43 L94 L95 L96
    Date: 2008–04
  5. By: BONNET, Céline; DUBOIS, Pierre
    Date: 2008–05
  6. By: Sharon Horsky (Bar-Ilan University, Graduate School of Business Administration,); Steven C. Michael (University of Illinois, Department of Business Administration); Alvin J. Silk (Harvard Business School)
    Abstract: The common perception appears to be that vertical integration of advertising services is more the exception than the rule in the U.S. advertising industry. This study investigates the extent of such outsourcing and examines inter-industry variation in the use of in-house rather than independent advertising agencies by U.S. advertisers. While the vast majority of <u>large</u> advertisers employ outside agencies, it comes as a surprise to find that when advertisers of <u>all</u> <u>sizes</u> are considered, about half operate some form of in-house agency. Internalization of advertising services is much more widespread than has hitherto been appreciated and varies widely across industries. To explain this variation, we draw on concepts from research on scale economies and transaction costs to develop a set of hypotheses which we test in cross sectional analyses of data covering 69 two digit SIC industries at two points in time, 1991 and 1999. Across industries, we find that the likelihood of internalization of advertising services <u>decreases</u> as the size of advertising outlays increase but <u>increases</u> as advertising intensity and technological intensity increase and is greater for "creative" industries.
    Keywords: Advertising Agencies, In-House, Vertical Integration, Make or Buy
    Date: 2008–07
    Abstract: Strategy and management are becoming priorities for the survival and growth of Italian Cultural Firms. After a decade of advantageous legislation – from several acts regarding cultural foundations to fiscal acts concerning tax incentives for private sponsors – Italian Cultural Firm are curious of Fundraising Techniques. Also through the analysis of some highlighted case histories, it will be explained of fundraising techniques for the Cultural Industry and of performances of the Italian Cultural Sector in raising private funds. Price marketing will be analyzed next to fundraising as strategies that both nourish assets and resources of the firm. Case histories will be suitable, both for visual and performing arts, in order to give evidence of what is happening on the Italian Stage.
    Keywords: strategy; management; marketing; fundraising; culture
    JEL: M30 M20 G30 M10
    Date: 2008–07–27
  8. By: Alexander S. Kritikos; Christoph Kneiding; Claas Christian Germelmann
    Abstract: In less developed and transition economies, microlending has become an efficient instrument for providing small and micro-businesses with the necessary financial resources to launch operations. In the industrialized countries, with their highly developed banking systems, however, there has been ongoing debate on the question of whether an uncovered demand for microlending services exists. The present study explores customer preferences for microlending products. Among 213 small and micro-business owners interviewed, 15% reported revolving funding needs and an interest in microloans. We find that potential recipients of microloan products are retail business owners, foreign small business owners, and persons who had previously received private loans. Furthermore, financial products should feature rapid access to short-term loans combined with personal contacts to loan officers who are able to thoroughly understand the client’s business concept.
    Date: 2008–08

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