nep-mkt New Economics Papers
on Marketing
Issue of 2008‒11‒04
eleven papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. The Moderating Roles of Relationship Quality and Dependency in Retailers’ New Product Adoption Decisions By Everdingen, Y.M. van; Sloot, L.M.; Verhoef, P.C.
  2. Agent-Based simulation as a useful tool for the study of markets By Juliette Rouchier
  3. Perspectives on Agricultural Marketing in 2008: Voices from the Rural Areas By Equipe Técnica do SIMA
  4. Tourism and Regional Competitiveness: the Case of the Portuguese Douro Valley By Argentino Pessoa
  6. Conceptualizing and illustrating the digital lifestyle of youth By Pedro Quelhas Brito
  8. A SSNIP test for two-sided markets: the case of media By Lapo Filistrucchi
  9. Blogs and the Economics of Reciprocal Attention By Gaudeul, Alexia; Mathieu, Laurence; Peroni, Chiara
  10. Le commerce en ligne des œuvres d'art By Victor Lebreton; Xavier Greffe
  11. Improving farm-to-market linkages through contract farming: A case study of smallholder dairying in India By Birthal, Pratap S.; Jha, Awadhesh K.; Tiongco, Marites; Narrod, Clare

  1. By: Everdingen, Y.M. van; Sloot, L.M.; Verhoef, P.C. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: This study contributes to the retail adoption literature by explicitly focusing on the role of both profit-related and relationship variables in explaining new product adoption decisions by retailers, instead of considering either one of these groups of variables in isolation as has been done by previous retail adoption studies. Moreover, it specifically addresses how both relationship quality and a retailer’s dependence on the manufacturer moderate the effect of profit drivers. Using a sample of 392 new product adoption decisions by four Dutch retailers, the authors estimate a random effects logit model to explain adoption decisions. The results show significant positive main effects of gross margin, consumer support, product uniqueness, relationship quality and the retailer’s dependency on the manufacturer on the adoption decision. Moreover, the authors find that improved relationship quality tends to reduce the importance of both gross margin and consumer support in the adoption decision process, but surprisingly leads to a stronger impact of trade support. The moderating effect of the retailer’s dependence on the manufacturer also differs between profit drivers, such that it decreases the positive impact of gross margin, consumer support and product uniqueness, and it increases the negative effect of store brand cannibalization.
    Keywords: adoption;power;store brands;relationship marketing;logit model;retail
    Date: 2008–10–24
  2. By: Juliette Rouchier (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales - CNRS : UMR6579)
    Abstract: This paper explores diverse dimensions of the use of agent-based simulation used for the analysis of market dynamics. The literature that is studied is in majority related to economics theory, but can also be part of marketing studies. The main point in this reearch is the focus that authors put on learning, diffusion, imitation and bouded rationality. Markets are seen through several sub-divisions, such as: buyer-seller interpersonal relationship; views on the global chain, including consumer-producer relationships and learning; financial markets are also widely studied.
    Keywords: learning ; agent-based simulation ; markets ; diffusion ; ACE ; loyauté
    Date: 2008–10–24
  3. By: Equipe Técnica do SIMA
    Abstract: This flash presents the perspectives of economic agents active in agricultural marketing of the 2007/2008 crop year compared to previous years. According to the agents interviewed, the current marketing season can be characterized by the following: 1) poor production and low yields for maize, beans, and other crops; 2) early start to the marketing season ; 3) very high prices at the beginning and increases during the period when prices usually decline; 4) strong competition between the formal and informal private sector agents particularly in areas with cell phone coverage; 5) active markets along the routes with best access and with good communication and transport networks; and 6) new economic agents (animal ration industry growing; new maize mills, new export alternatives, local purchase for food aid). With these observations, the agents predict high prices into the future.
    Keywords: food security, food policy Mozambique, marketing
    JEL: Q18
    Date: 2008
  4. By: Argentino Pessoa (Faculdade de Economia, Universidade do Porto)
    Abstract: Using a framework that articulates the most important factors of competitiveness to evaluate the regional economic strategies, and applying this framework to the Portuguese NUT III Douro, we show that this region is relatively weak in terms of internal linkages, subject to ageing and out-migration and lacking in innovation and entrepreneurship, apart from being isolated from mass markets. With these characteristics, to define only the priority to tourism is clearly insufficient for convergence. So, after assessing the results of such strategy, the paper ends with a conclusion that is extensive to other regions: the lagging regions, which are trying to converge with the more developed ones based on tourism, cannot only rely on a combination of environmental resources and marketing, but have to attend to other factors of competitiveness as well.
    Keywords: Douro Valley, environmental resources, regional competitiveness, tourism
    JEL: Q25 Q28 R19 R58
    Date: 2008–10
  5. By: Antony Chapoto (Agricultural, Food and Resource Economics Department, Michigan State University); Steven Haggblade (Agricultural, Food and Resource Economics Department, Michigan State University); Julius Shawa; Thomas Jayne (Agricultural, Food and Resource Economics Department, Michigan State University); Michael Weber (Agricultural, Food and Resource Economics Department, Michigan State University)
    Abstract: 1) Maize prices are rising rapidly in 2008 and are fast approaching import parity levels. 2) Maize traders, millers and farmers all agree that Zambia will likely require imports by early 2009 in order to avoid domestic maize supply shortages. 3) Official food balance sheets appear to have underestimated the demand for maize this year. They may also have slightly overestimated the size of the 2007/08 maize crop. Hence the slow government recognition of the need for maize imports. 4) As of late September 2008, neither the Government of Zambia (GRZ) nor the private sector have arranged to import maize from South Africa. Trade sources suggest informal imports from Tanzania are helping to relieve the likely shortfall. 5) Zambian policy makers face a delicate balancing act: they need to maintain remunerative prices for farmers, in order to stimulate maize supply response during the coming 2008/09 production season, while at the same time moderating maize meal price increases to protect urban consumers and the many rural households who are net buyers of maize. 6) The time to respond to this balancing act challenge is now rather than later in the marketing season when costs of supplies and transport will increase. 7) Several policy actions offer potential win/win options for balancing these twin concerns:
    Keywords: food security, food policy, Zambia, maize, marketing
    JEL: Q20
    Date: 2008
  6. By: Pedro Quelhas Brito (LIAAD/INESC-Porto, Faculdade de Economia, Universidade do Porto)
    Abstract: This research looks at the psychosocial content and nature of the concept of the digital lifestyle when applied to pre-teens and teenagers. The concept of lifestyle is analyzed to assess whether the digital technological context is an acceptable framework to characterize the daily life of pre-teens and teenagers. Five dimensions of the digital lifestyle concept were useful to structure more than 200 technologically aware young consumers who discussed the meaning and usage of several digital devices.
    Keywords: Consumer psychology, Internet, teenagers
    Date: 2008–10
  7. By: Maria João Sousa (Faculdade de Economia e Gestão, Universidade Católica Portuguesa (Porto)); Susana Costa e Silva (Faculdade de Economia e Gestão, Universidade Católica Portuguesa (Porto))
    Abstract: Internationalization has been widely studied throughout the years. Broadly, it has been predicted as irrevocable and having increasing impact on firm-related strategy. Within entry modes, consortium, has not received as much attention as others. Hence, it seems important to understand how this specific entry mode allows the entrance of firms in the international markets. This study intends to answer the question of “how” to internationalize, anticipating the consortium as the most feasible way for construction firms to enter certain markets. The reasons that determine its choice concern the specificness of the projects, markets and of the firm. In the first part of the study, we review the existent literature on consortia as an entry mode and as a tool of internationalization used by construction firms. Through this review we build a framework that reveals the motivations that lead to this choice. In the second part, we present the case study of Mota-Engil, as a potential source of valuable information which may contribute to the understanding of the phenomenon under study. This case study corroborates the motivations found to create consortia. The paper closes with its contributions, limitations and suggestions for future researches.
    Keywords: consortia, internationalization, cooperation, construction
    Date: 2008–10
  8. By: Lapo Filistrucchi (Department of Economics, CentEr & TILEC, Tilburg University)
    Abstract: I discuss the design and implementation of a SSNIP test in order to identify the relevant market in a media market. I argue that in such a two-sided market the traditional SSNIP test cannot be applied as it is usually conceived but rather should be modified in order to take into account indirect network externalities. I discuss the issues of which price the hypothetical monopolist should be thought of as raising, of whether we should look at profits changes on only one side or on both sides of the market and of which feedback among the two sides of the market we should take into account. I then derive the relevant formulas for Critical Loss Analysis. These look much uglier than in a single-sided market but in fact they are easy to calculate as they are still expressed in terms of elasticities and of current observed markups, prices and quantities. Data requirements are however higher as one needs to estimate the matrixes of the own and cross price elasticities of demand on the two-sides of the market and the matrixes of the network effects. The paper fills a gap in the economic literature, so much more as market definition in media markets is at the centre of many recent competition policy and regulation cases around the world.
    Keywords: two-sided markets, SSNIP test, Hypothetical Monopolist test, critical loss analysis, critical elasticity analysis, market definition, media
    JEL: L40 L50 K20
    Date: 2008–10
  9. By: Gaudeul, Alexia; Mathieu, Laurence; Peroni, Chiara
    Abstract: Blogs differ from other media in that authors are usually not remunerated and inscribe themselves in communities of similarly minded individuals. Bloggers value reciprocal attention, interaction with other bloggers and information from reading other blogs; they value being read but also writing itself, irrespective of an audience. A novel dataset from a major blogging community, LiveJournal, is used to verify predictions from a model of social networking. Content production and blogging activity are found to be related to the size and degree of asymmetry of the relational networks in which bloggers are inscribed.
    Keywords: Blog; Internet; Media; Community; Social Network; Reciprocity; Livejournal; Web 2.0
    JEL: L82 Z13 D85
    Date: 2008–10–28
  10. By: Victor Lebreton (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Xavier Greffe (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: La vente en ligne d'œuvres d'art devient un moyen important d'échange et de commercialisation des œuvres. Nous étudions cette nouvelle façon de mettre en contact acheteur e t vendeur à travers de sites spécialisés. Ce chapitre d'ouvrage comprend des tableaux comparatifs des portails et maison de vente en ligne d'œuvre d'art et d'antiquités.
    Keywords: Vente a distance;VAD;marché de l'art;internet;commerce de l'art;portail web;maison de vente;vente en ligne;marche de l'art;antiquités
    Date: 2008–09
  11. By: Birthal, Pratap S.; Jha, Awadhesh K.; Tiongco, Marites; Narrod, Clare
    Abstract: "Contract farming is emerging as an important form of vertical coordination in the agrifood supply chain in India, and its socioeconomic consequences are attracting considerable attention in public policy debates. This study is an empirical assessment of the costs and benefits of contract farming in milk using information generated through field surveys in the western state of Rajasthan. Contract farming is found to be more profitable than independent production. Its major benefits come from a reduction in marketing and transaction costs, which are otherwise much higher in the open markets. Contract farming also contributes toward improving milk yield and reducing production costs, albeit not significantly. Dairy producers also benefit from provision of services and technical advice by integrators/firms who secure milk supplies from farmers through contract. The benefits of contract farming vary by scale of operation. Economies of scale are also important determinants of competitiveness, in which large farms (both contract and independent) have lower per unit cost due to buying of inputs in bulk and greater access to markets. Smallholders, on the other hand, derive significant benefits from a reduction in marketing and transaction costs due to their participation in contract farming." from authors' abstract
    Keywords: Contract farming, smallholder dairying in India, marketing and transaction costs, milk supply chain, treatment effects model, mass balance approach,
    Date: 2008

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