nep-mkt New Economics Papers
on Marketing
Issue of 2009‒02‒14
six papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. Grid Marketing and Beef Carcass Quality: A Discussion of Issues and Trends By Scott Fausti; Bashir Qasmi; Matt Diersen
  2. Understanding consumer needs and preferences in new product development: the case of functional food innovations By Ellen H.M. Moors; Rogier Donders
  3. Non-comparative versus Comparative Advertising as a Quality Signal By Winand Emons; Claude Fluet
  4. Electricity Retailing in Norway By von der Fehr, Nils-Henrik M.; Hansen, Petter Vegard
  5. Innovative Firms or Innovative Owners? Determinants of Innovation in Micro, Small, and Medium Enterprises By de Mel, Suresh; McKenzie, David; Woodruff, Christopher
  6. Is it Who You Ask or How You Ask? Findings of a Meta-Analysis on Genetically Modified Food Valuation Studies By Dannenberg, Astrid

  1. By: Scott Fausti (Department of Economics, South Dakota State University); Bashir Qasmi (Department of Economics, South Dakota State University); Matt Diersen (Department of Economics, South Dakota State University)
    Abstract: Beef industry data suggest that improvements in carcass yield and quality grades have stagnated recently. Empirical analysis, based on USDA market reports, indicates that the share of steer slaughter volume marketed on a grid is less than industry estimates and the growth in market share has stagnated. Trend analysis of market share suggests that grid pricing has become an important marketing channel, but has not become the dominant marketing channel. The lack of industry progress toward achieving the carcass quality goals suggests that grid pricing has not captured the level of market share needed to realize the goals envisioned for it as a value based marketing system.
    Keywords: cattle pricing, grid pricing, farm policy
    JEL: Q18 Q13
    Date: 2008–06
  2. By: Ellen H.M. Moors; Rogier Donders
    Abstract: As the majority of new products fail it is important to focus on the needs and preferences of the consumers in new product development. Consumers are increasingly recognised as important co-developers of innovations, often developing new functions for technologies, solving unforeseen problems and demanding innovative solutions. The central research question of the paper is: How to understand consumer needs and preferences in the context of new product development in order to improve the success of emerging innovations, such as functional foods. Important variables appear to be domestication, trust and distance, intermediate agents, user representations and the consumer- and product specific characteristics. Using survey and focus group data, we find that consumers need and prefer easy-to-use new products, transparent and accessible information supply by the producer, independent control of efficacy and safety, and introduction of a quality symbol for functional foods. Intermediate agents are not important in information diffusion. Producers should concentrate on consumers with specific needs, like athletes, women, obese persons, and stressed people. This will support developing products in line with the needs and mode of living of the users.
    Keywords: consumer needs, preferences, new product development, functional foods
    Date: 2009–02
  3. By: Winand Emons; Claude Fluet
    Abstract: Two firms produce a product with a horizontal and a vertical characteristic. We call the vertical characteristics quality. The difference in the quality levels determines how the firms share the market. Firms know the quality levels, consumers do not. Under non-comparative advertising a firm may signal its own quality. Under comparative advertising firms may signal the quality differential. In both scenarios the firms may attempt to mislead at a cost. If firms advertise, in both scenarios equilibria are revealing. Under comparative advertising the firms never advertise together which they may do under non-comparative advertising.
    Keywords: Advertising, costly state falsification, signalling
    JEL: D82 K41 K42
    Date: 2009
  4. By: von der Fehr, Nils-Henrik M. (Dept. of Economics, University of Oslo); Hansen, Petter Vegard
    Abstract: We analyse retailer and household behaviour on the Norwegian electricity market, based on detailed information on prices and other market characteristics. We find that there exists a competitive market segment where a number of retailers compete fiercely for customers, with small margins on all products. However, we also find evidence of monopolistic behaviour, whereby retailers exploit the passivity of some of their customers. We discuss explanations for these results, as well as means to improve market performance.
    Keywords: Electricity retailing; electricity prices;
    JEL: A10
    Date: 2008–06–09
  5. By: de Mel, Suresh (University of Peradeniya); McKenzie, David (World Bank); Woodruff, Christopher (University of California, San Diego)
    Abstract: Innovation is key to technology adoption and creation, and to explaining the vast differences in productivity across and within countries. Despite the central role of the entrepreneur in the innovation process, data limitations have restricted standard analysis of the determinants of innovation to consideration of the role of firm characteristics. We develop a model of innovation which incorporates the role of both owner and firm characteristics, and use this to determine how product, process, marketing and organizational innovations should vary with firm size and competition. We then use a new large representative survey from Sri Lanka to test this model and to examine whether and how owner characteristics matter for innovation. The survey also allows analysis of the incidence of innovation in micro and small firms, which have traditionally been overlooked in the study of innovation, despite these firms comprising the majority of firms in developing countries. More than one quarter of microenterprises are found to be engaging in innovation, with marketing innovations the most common. As predicted by our model, firm size is found to have a stronger positive effect, and competition a stronger negative effect, on process and organizational innovations than on product innovations. Owner ability, personality traits, and ethnicity are found to have a significant and substantial impact on the likelihood of a firm innovating, confirming the importance of the entrepreneur in the innovation process.
    Keywords: innovation, microenterprises, SMEs, development
    JEL: O31 L26
    Date: 2009–01
  6. By: Dannenberg, Astrid
    Abstract: This paper presents a meta-analysis of 46 primary studies reporting a total of 108 genetically modified food valuation estimates. The analysis shows that elicitation methods and formats used in the primary studies affect valuation estimates much more than do sample characteristics. Moreover, consumer aversion to genetically modified food seems to have increased over time. Previous findings are confirmed that consumer valuation strongly depends on the type of food product and varies among regions.
    Keywords: meta-analysis, consumer preferences, genetically modified food
    JEL: Q18 Q51 Q55
    Date: 2008

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