nep-mkt New Economics Papers
on Marketing
Issue of 2009‒01‒03
six papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. A systematic analysis of the preference change in co-branding By Lee, Chia-Lin; Decker, Reinhold
  2. Comparative Advertising: disclosing horizontal match information By Simon P. ANDERSON; Régis RENAULT
  3. Pricing on the European Mass Tourism Market: Tour Operators, Low Cost Carriers and Internet By Jaume Rosselló Nadal; Antoni Riera Font
  4. The First of the Month Effect: Consumer Behavior and Store Responses By Justine S. Hastings; Ebonya L. Washington
  5. An analysis of the role of liking on the memorial response to advertising By Sergio, Brasini; Marzia, Freo; Giorgio, Tassinari
  6. Price Discrimination and Customer Behaviour: Empirical Evidence from Marseille By Alan Kirman; Sonia Moulet; Rainer Schulz

  1. By: Lee, Chia-Lin; Decker, Reinhold
    Abstract: This paper presents current theoretical and empirical findings on consumers’ preference change in co-branding. We develop a conceptual model to illustrate consumers’ attitudinal changes in co-branding based on the findings of Park et al. (1996) and Simonin and Ruth (1998), among others. We argue that the attitude change is influenced by three important effects, namely the extension effect, the mutual effect, and the reciprocal effect. It is shown how the interaction of these effects can be used to systematically explain the rationale behind preference change in co-branding. So, our study takes an initial step toward the understanding of the connection between consumer evaluation and the success of alliance formation for adapting the Venkatesh et al. (2000) model. Finally, we provide suggestions for marketing managers and motivate the need for further research in the field of strategic marketing.
    Keywords: co-branding;attitude change;preference change;consumer behavior
    JEL: M31
    Date: 2008–12–17
  2. By: Simon P. ANDERSON (Department of Economics, University of Virginia); Régis RENAULT (THEMA, University of Cergy-Pontoise)
    Abstract: Improved consumer information about (symmetric) products can lead to better matching but also higher prices, so consumer surplus can go up or down, while profits rise. With enough firm asymmetry though, the stronger firm's price falls with more information, so both effects benefit consumers. This is when comparative advertising is used, against a large firm by a small one. Comparative advertising, as it imparts more information, therefore helps consumers. While it also improves profitability of the small firm, overall welfare goes down because of the large loss to the attacked firm.
    Keywords: comparative advertising, information, product differentiation, quality
    JEL: D42 L15 M37
    Date: 2008
  3. By: Jaume Rosselló Nadal (Centre de Recerca Econòmica (UIB · Sa Nostra)); Antoni Riera Font (Centre de Recerca Econòmica (UIB · Sa Nostra))
    Abstract: The recent expansion of Low Cost Carriers (LCCs) and the increasing use of Internet are provoking a deep transformation in the marketing of the typical Mediterranean summer tourism product in Europe. Internet may significantly reduce intermediary costs by enabling the connection between accommodation and transport business and consumers. At the same time, a more flexible product can be created in contrast to the conventional rigid tourist package offered by traditional tour operators. This paper investigates differences in price level and price dispersion across off-line and on-line markets and across tour operators and new emerging Internet retailers -including LCCs- using microdata on travel & accommodation individual expenses of tourists in the Balearic Islands, one of the most representative mature Mediterranean resorts. On the basis of the hedonic regression model, results suggest that price of transport; accommodation and board offered on Internet are lower than those offered by others channels, whatever the quality and quantity. Additionally, results reveal how on-line and off-line markets differ in the indirect value attributed to different characteristics of the product showing market segmentation.
    Keywords: Internet pricing, e-tail, hybrid retailers, intermediaries, tourist products, Mediterranean Sea.
    Date: 2008
  4. By: Justine S. Hastings; Ebonya L. Washington
    Abstract: Previous research has used survey and diary data to carefully document that Food Stamp recipients decrease their expenditures and consumption of food throughout the benefit month, the beginning of which is defined by the date on which benefits are distributed. The reliance on survey and diary data has meant that researchers could not test two rational hypotheses for why food consumption cycles. Using detailed grocery store scanner data we ask 1) whether cycling is due to a desire for variation in foods consumed that leads to substitution across product quality within the month and 2) whether cycling is driven by countercyclical pricing by grocery retailers. We find support for neither of these hypotheses. We find that the decrease in food expenditures is largely driven by reductions in food quantity, not quality, and that prices for foods purchased by benefit households vary pro-cyclically with demand implying that benefit households could save money by delaying their food purchases until later in the month. The price effects are small relative to demand changes and relative to impacts found for other subsidy programs such as EITC, suggesting that most of the benefits accrue to the intended recipients particularly in product categories and stores where benefit recipients represent a small fraction of overall demand. We conclude by concurring with previous literature that food cycling behavior is most likely due to short-run impatience.
    JEL: H0 H2 H31 H32 L1
    Date: 2008–12
  5. By: Sergio, Brasini; Marzia, Freo; Giorgio, Tassinari
    Abstract: After the publication of the results of the Advertising Research Foundation’s Copy Research Validity Project, ad liking has been extensively used as copy test predictor of campaign’s performance. Less favourable findings have been recently presented on the basis of its delayed effects. This paper addresses the question of carryover effects of ad liking on the recall, jointly modelling the patterns of recall, ad pressure and ad liking, by means of the specification of a vector autoregressive model with GRPs acting as exogenous variable. The approach is innovative since literature has mainly investigated until now only the simultaneous relationship between advertising, recall and liking. The analysis is carried out for the markets of small automobiles, deodorants and shampoos. Main empirical findings for the analysed categories highlight that: 1) carryover effects of ad liking on the recall measures may be detected but not systematically, and 2) the ad liking role of ad likeability on memorial responses varies among product categories. Moreover 3) a further finding shows that, whereas positive influences are thoroughly retrievable (in the small car category), ad likeability influences more advertising than brand awareness and more total than unaided awareness.
    Keywords: Advertising effectiveness; Ad Liking; Recall; VARX models;
    JEL: C32 M31 M37
    Date: 2008–12–16
  6. By: Alan Kirman (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); Sonia Moulet (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); Rainer Schulz (Business School Aberdeen - Aberdeen University)
    Abstract: We analyse the interaction between a seller and customers in a shop on the fruits and vegetables wholesale market in Marseille using an unique data set. We find that customers' bargaining activity is correlated with the kind and location of the business. To determine how the interactions between the seller and the customers influence prices, we compare the price each customer pays for a given good with the daily average price. We find that a customer of the shop is more likely to pay a price higher than other customers for the same good if---ceteris paribus---the customer is unknown to the shop assistants, buys only a small quantity, or buys goods sold on commission. If the customer is known to the shop assistants, then loyalty and bargaining make it more likely that the customer gets better than average price.
    Keywords: Face-to-face bargaining ; customer loyalty
    Date: 2008–12–22

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