nep-mkt New Economics Papers
on Marketing
Issue of 2009‒01‒31
four papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. The Italian Art Market and the importance of communication strategies: from fairs to auction houses’ best practices By BESANA, ANGELA
  2. A New Era for the Music Industry: How New Technologies and the Internet Affect the Way Music is Valued and have an Impact on Output Quality By Tassos Patokos
  3. New prospects for payment card application in health care By Ann Kjos
  4. Measuring Power and Satisfaction in Societies with Opinion Leaders: Properties of the Qualified Majority Case By René van der Brink; Agnieszka Rusinowska; Frank Steffen

    Abstract: The Italian cultural industry is now marching on an innovative supply chain, whose main pattern consists in a new utility perception and consumption behaviours on the demand side and a strong vocation to invest in communication and public relations on the supply side. The content of this paper is an attempt to justify the emerging relevance of marketing strategies and investments in the Italian art market, referring to new incubators like art fairs – as concerns 2004’s interviews with art galleries - and to a modern and consistent approach to communication instruments evaluation for key competitors like auction houses. Angela Besana
    Keywords: strategy;communication;art market;auction house
    JEL: L82 D21 M37 D10 L31 M30 L33
    Date: 2009–01–14
  2. By: Tassos Patokos (University of Athens, Greece)
    Abstract: Since its early days, the Internet has been used by the music industry as a powerful marketing tool to promote artists and their products. Nevertheless, technology developments of the past ten years, and especially the ever-growing phenomenon of filesharing, have created the general impression that the Internet is responsible for a crisis within the industry, on the grounds that music piracy has become more serious than it has ever been. The purpose of this paper is to present the impact of new technologies and the Internet on the three main actors of the music industry: consumers, artists and record companies. It is claimed that the Internet has changed the way music is valued, and also, that it may have a direct effect on the quality of the music produced, as perceived by both artists and consumers alike.
    Keywords: Digital economy, Internet, copyright, Game theory, Imperfect information
    JEL: A10 C73 D80 O33 O34
    Date: 2008–01
  3. By: Ann Kjos
    Abstract: While consumers' use of payment cards has grown rapidly in many other areas, their use in making health-care payments has been far more limited. This paper attempts to explain several reasons for the slow adoption rates and identifies four related trends and developments that can be expected to lead to more rapid growth in the future: (1) a shift away from employer-provided health care to consumer-directed health-care plans, (2) an expansion of health-care savings accounts, (3) a move toward using debit and prepaid card applications to address limitations in paper-based environments, and (4) a recent Internal Revenue Service ruling intended to improve the efficiency of electronic payment processing. While these factors are expected to contribute to the acceleration of growth for payment card applications in health care, we know less about potential barriers stemming from consumer behavior, raising a cautionary note pending further research.
    Keywords: Payment systems
    Date: 2008
  4. By: René van der Brink (Department of Econometrics and Tinbergen Institute, Free University, The Netherlands); Agnieszka Rusinowska (University of Lyon, Lyon, F-69003, France; CNRS, UMR 5824, GATE, Ecully, F-69130, France; ENS LSH, Lyon, F-69007, France ; Centre Leon Berard, Lyon, F-69003, France; Department of Econometrics and Tinbergen Institute, Free University, The Netherlands); Frank Steffen (The University of Liverpool Management School (ULMS))
    Abstract: A well known and established model in communication policy in sociology and mar- keting is that of opinion leadership. It is based on the idea of a two-step flow of communication. Opinion leaders are actors in a society who are able to affect the behavior of other members of the society called followers. Hence, opinion leaders might have a considerable impact on the behavior of markets and other social agglomerations being made up of individual actors choosing among a number of alternatives. For marketing purposes it appears to be interesting to investigate the effect of different opinion leader-follower structures in markets or any other collective decision-making situations in a society. We study a two-action model in which the members of a society are to choose one action, for instance, to buy or not to buy a certain joint product, or to vote yes or no on a specific proposal. Each of the actors has an inclination to choose one of the actions. By definition opinion leaders have some power over other actors, their followers, and they exercise this power by influencing the behavior of their followers, i.e. their choice of action. After all actors have chosen their actions, a decision- making mechanism determines the collective choice resulting out of the individual choices. The structure of the relations between the actors can be represented by a bipartite digraph. We analyze such digraphs investigating satisfaction and power distributions within societies with and without the opinion leaders. Moreover, we study common properties of the satisfaction and power measures and illustrate our findings and some marketing implications for a society with five members.
    Keywords: Bipartite digraph, influence, inclination, collective choice, opinion leader, follower, satisfaction, power
    JEL: C7 D7
    Date: 2008

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