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on Marketing |
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Issue of 2009‒03‒07
eleven papers chosen by Joao Carlos Correia Leitao Technical University of Lisbon |
| By: | Morozan, Cristian; Enache , Elena; Vechiu, Camelia |
| Abstract: | The people who receive the information and buy products/services migrate, nowadays, from traditional to on-line media, a greater number of them is accessing the desired news from specialized sites and from mobile devices, anywhere and anytime. The fast adopting of new technologies affects – and transform – manufacturing, distribution and consume, but to optimize on-line channels is necessary to act objectively, and to found the decisions on performance key indicators. In the process of adapting to these market changes, the marketers have the opportunity to reach a different audience through on-line and mobile instruments. This approach based on real data, facilitated by web analysis, helps companies to focus the efforts and to have success with the new offer versions. |
| Keywords: | digital marketing; blog; mobile marketing; interactive television |
| JEL: | M3 |
| Date: | 2009–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13725&r=mkt |
| By: | Hayley H. Chouinard; David E. Davis; Jeffrey LaFrance; Jeffrey M. Perloff (School of Economic Sciences, Washington State University) |
| Abstract: | Determining the impacts on consumers of government policies affecting the demand for food products requires a theoretically consistent micro-level demand model. We estimate a system of demands for weekly city-level dairy product purchases by nonlinear three stage least squares to account for joint determination between quantities and prices. We analyze the distributional effects of federal milk marketing orders, and find results that vary substantially across demographic groups. Families with young children suffer, while wealthier childless couples benefit. We also find that households with lower incomes bear a greater regulatory burden due to marketing orders than those with higher income levels. |
| Keywords: | Milk, marketing orders, dairy industry regulation |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:chouinard-3&r=mkt |
| By: | Christina Matzke; Benedikt Wirth |
| Abstract: | We analyze the strategic behavior of firms when demand is determined by a rule of thumb behavior of consumers. We assume consumer dynamics where individual consumers follow simple behavioral decision rules governed by imitation and habit as suggested in consumer research. On this basis, we investigate monopoly and competition between firms, described via an open-loop differential game which in this setting is equivalent to but analytically more convenient than a closed-loop system. We derive a Nash equilibrium and examine the influence of advertising. We show for the monopoly case that a reduction of the space of all price paths in time to the space of time-constant prices is sensible since the latter in general contains Nash equilibria. We prove that the equilibrium price of the weakest active firm tends to marginal cost as the number of (non-identical) firms grows. Our model is consistent with observed market behavior such as product life cycles. |
| Keywords: | bounded rationality, social learning, population game, differential game, product life cycle, monopoly, competition, pricing, advertising |
| JEL: | C61 C62 C79 L11 L21 M31 M37 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:bon:bonedp:bgse3_2009&r=mkt |
| By: | Nils-Henrik M. Von Der Fehr; Petter Vegard Hansen |
| 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 markets, retailing, supply, competition |
| Date: | 2009–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2009/04&r=mkt |
| By: | Trenton Smith; Hayley Chouinard; Philip Wandschneider (School of Economic Sciences, Washington State University) |
| Abstract: | In many ways, the modern market for food exemplifies the economist’s conception of perfect competition, with many buyers, many sellers, and a robust and dynamic marketplace. But over the course of the last century, the U.S. has witnessed a dramatic shift away from traditional diets and toward a diet comprised primarily of processed brand-name foods with deleterious long-term health effects. This, in turn, has generated increasingly urgent calls for policy interventions aimed at improving the quality of the American diet. In this paper, we ask whether the current state of affairs represents a market failure, and—if so—what might be done about it. We review evidence that most of the nutritional deficiencies associated with today’s processed foods were unknown to nutrition science at the time these products were introduced, promoted, and adopted by American consumers. Today more is known about the nutritional implications of various processing technologies, but a number of forces—including consumer habits, costly information, and the market power associated with both existing brands and scale economies—are working in concert to maintain the status quo. We argue that while the current brand-based industrial food system (adopted and maintained historically as a means of preventing competition from small producers) has its advantages, the time may have come to consider expanding the system of quality grading employed in commodity markets into the retail market for food. |
| Keywords: | credence goods, history, food policy, certification |
| JEL: | D23 D83 I18 Q18 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:tgsmith-5&r=mkt |
| By: | Trenton Smith; Hayley Chouinard; Philip Wandschneider (School of Economic Sciences, Washington State University) |
| Abstract: | In many ways, the modern market for food exemplifies the economist’s conception of perfect competition, with many buyers, many sellers, and a robust and dynamic marketplace. But over the course of the last century, the U.S. has witnessed a dramatic shift away from traditional diets and toward a diet comprised primarily of processed brand-name foods with deleterious long-term health effects. This, in turn, has generated increasingly urgent calls for policy interventions aimed at improving the quality of the American diet. In this paper, we ask whether the current state of affairs represents a market failure, and—if so—what might be done about it. We review evidence that most of the nutritional deficiencies associated with today’s processed foods were unknown to nutrition science at the time these products were introduced, promoted, and adopted by American consumers. Today more is known about the nutritional implications of various processing technologies, but a number of forces—including consumer habits, costly information, and the market power associated with both existing brands and scale economies—are working in concert to maintain the status quo. We argue that while the current brand-based industrial food system (adopted and maintained historically as a means of preventing competition from small producers) has its advantages, the time may have come to consider expanding the system of quality grading employed in commodity markets into the retail market for food. |
| Keywords: | credence goods, history, food policy, certification |
| JEL: | D23 D83 I18 Q18 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:wandschneider-1&r=mkt |
| By: | Martin, Ludivine |
| Abstract: | Our empirical study aims at identifying the drivers of the implementation of an e-business strategy by firms located in Luxembourg. The setting up of such a strategy is apprehended through the website and the type of strategy through the functionalities available on the Internet. Thus we distinguish an information-oriented strategy from a commercially oriented one. Probit analyses and models derived from count data models are conducted on a dataset of website investments by about 1100 firms located in Luxembourg. Our results show that the sale of online fashionable products like tourism, the ownership of a well-known brand and the follow-up of rivals' behaviours are highly significant determinants of the adoption and development of an e-business strategy. Financial, human and technological resources seem to favour the adoption of such a strategy but have no significant influence on the choice of the strategy pursued. Moreover the use of technologies that make the business process more flexible, public actions that diffuse best practices concerning technologies adoption and being the leader on the market are specific drivers of the deployment of an e-business strategy. Finally, an intense perceived competition negatively influences the decision to invest heavily in e-commerce. |
| Keywords: | e-business strategies; website adoption and investment; right truncated Poisson regression |
| JEL: | L21 O33 L86 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13645&r=mkt |
| By: | Romana L. Autrey (Harvard Business School, Accounting and Management Unit); Francesco Bova (Rotman School of Management, University of Toronto) |
| Abstract: | Gray markets arise when a manufacturer's products are sold outside of its authorized channels, for instance when goods designated for a foreign market are resold domestically. One method multinationals use to combat gray markets is to increase internal transfer prices to foreign subsidiaries in order to increase the gray market's cost base. We illustrate that when a gray market competitor is present, the optimal price for internal transfers exceeds marginal cost, but decreases in the competitiveness of the domestic economy. Moreover, we illustrate that gray markets may cause unintended social welfare consequences when domestic governments mandate the use of arm's length transfer prices between international subsidiaries. Specifically, a shift to arm's length transfer pricing erodes domestic consumer surplus by making the gray market less competitive domestically. Under certain circumstances, the domestic welfare destruction arising from this erosion dominates the domestic welfare gains that accompany a shift to arm's length transfer pricing. Finally, the analysis illustrates that in a gray market setting, the transfer price that maximizes a multinational's profits may also be the same one that maximizes the social welfare of the domestic economy that houses it. |
| Keywords: | transfer pricing, gray markets, regulation |
| JEL: | D43 F23 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:09-098&r=mkt |
| By: | Lederman, Daniel |
| Abstract: | It is so widely recognized that innovation is a key driver of economic growth that it is cliché to say so. This article studies product innovation by firms with data from 68 countries, covering more than 25,000 firms in eight manufacturing sectors. The author assesses the predictions of inter-disciplinary research on innovation by firms. The econometric evidence suggests that globalization and local knowledge increase the likelihood that firms will introduce new products. By contrast, domestic regulatory impediments to competition are not robustly correlated with product innovation. |
| Keywords: | E-Business,Innovation,Microfinance,Education for Development (superceded),Statistical&Mathematical Sciences |
| Date: | 2009–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4840&r=mkt |
| By: | Adriaan R. Soetevent (Faculty of Economics & Business, University of Amsterdam) |
| Abstract: | This study uses a door-to-door fundraising field experiment to examine the impact of different payment options on charitable giving. Households are randomly divided into three treatments, distinguished by the possibility for respondents to donate cash, by debit card, or both. I find that due to dwindling participation, revenues are significantly lower in the debit-only treatment than in the baseline cash-only treatment. In the combined treatment, the vast majority of donors uses cash, participation decreases and especially small donors drop out. This indicates that the option to donate electronically crowds out the image motivation of cash donations. |
| Keywords: | Payment choice; field experiment; image motivation |
| JEL: | C93 D64 H41 E42 |
| Date: | 2009–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20090015&r=mkt |
| By: | Taiju Kitano (National Graduate Institute for Policy Studies); Hiroshi Ohashi (Faculty of Economics, University of Tokyo) |
| Abstract: | This paper examines US safeguards applied to the motorcycle market in the 1980s. After receiving temporary protection by means of a maximum tariff of over 45%, Harley-Davidson sales recovered dramatically. Simulations, based on structural demand and supply estimates, indicate that while safeguard tariffs did benefit Harley-Davidson, they only account for a fraction of its increased sales. This is primarily because consumers perceived that Harley-Davidson and Japanese large motorcycles were poorly matched substitutes for each other. Our results provide little evidence that safeguard provisions triggered restructuring in Harley-Davidson. |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2009cf612&r=mkt |