nep-mkt New Economics Papers
on Marketing
Issue of 2009‒05‒23
nine papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. Why Do We Look Bad? A Consumer Perspective of Un/Ethical Corporate Behavior By Katja Brunk
  2. Market Diffusion with Consumer-Based Bilateral Learning By Hiroshi Kitamura
  3. Analyzing the Impact of Food Price Increases: Assumptions about Marketing Margins can be Crucial By David Dawe; Irini Maltsoglou
  4. Assessment of Kenya's Domestic Horticultural Production and Marketing Systems and Lessons for the future By David L. Tschirley; Miltone Ayieko
  5. Mesure des préoccupations éthiques dans le contexte de la consommation : un état de l’art (measurement of ethical concerns in the context of consumption : a state of the art). By Virginie DELBENDE; Maud HERBERT
  6. No Through Road: The Limitations of Food Miles By Els Wynen
  7. Entry in the ADHD drugs market: Welfare impact of generics and me-toos By Farasat A.S. Bokhari; Gary M. Fournier
  8. Congestion Charges in Stockholm: How Have They Affected Retail Revenues? By Daunfeldt, Sven-Olov; Rudholm, Niklas; Rämme, Ulf
  9. Social Preferences? Google Answers! By Tobias Regner

  1. By: Katja Brunk (Centre Emile Bernheim, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Brussels.)
    Abstract: This research provides a much needed consumer perspective of corporate ethics. Based on twenty consumer interviews, the study conceptualizes potential sources of ‘consumer perceived ethicality (CPE) of a company/brand by investigating consumers’ ethical perceptions of business behavior. The developed taxonomy delineates six domains and sub-domains of CPE origin, relating to the impact corporate behavior has on: (1) consumers, (2) employees, (3) the environment, (4) the overseas community, (5) the local economy and community, and (6) the business community. The findings underscore that the consumer and company perspective on corporate ethics may differ. More importantly, the results highlight that dimensions of consumer perception of a company/brand’s ethics are far more diverse than previously assumed in the literature.
    Keywords: Consumer Perceived Ethicality (CPE), Corporate Ethics, Corporate Social Responsibility (CSR), Brand perceptions, Qualitative Research, Ethical consumption.
    JEL: M39
    Date: 2009–05
  2. By: Hiroshi Kitamura (Graduate School of Economics, Osaka University)
    Abstract: This paper analyzes the market diffusion of a new product whose quality is uncertain. Consumers learn the product quality by observing the history of market outcomes. Firms cannot observe how consumers evaluate the product quality and learn it in response to consumerfs behavior. As a result of informational externalities, new entry occurs gradually. This dual uncertainty contributes to S-shaped diffusion of the new product with strictly declining prices.
    Keywords: experience goods; quality uncertainty; bilateral learning; S-shaped diffusion.
    JEL: D11 L11 L14
    Date: 2009–05
  3. By: David Dawe (Agricultural and Development Economics Division, Food and Agriculture Organization); Irini Maltsoglou (Environment, Climate Change and Bioenergy Division Food and Agriculture Organization Italy)
    Abstract: This paper shows the importance of explicitly considering marketing margins in analyses of the impact of price changes on the welfare of different segments of the population. Failure to acknowledge the implicit marketing assumptions embedded in an analysis that assumes equal percentage changes for both farm and consumer prices leads to a bias towards finding negative impacts of higher food prices. In addition, the bias is not necessarily uniform across income quintiles; thus, failure to explicitly consider marketing margins could lead one to conclude that the poor are hurt relatively more than the rich by a price increase when in fact the opposite is true, or vice-versa. We provide rules of thumb and simple techniques that may help to ascertain, in many circumstances, the percentage change in consumer prices that is appropriate for a given percentage change in farm prices.
    Keywords: Food prices, food policy, poverty, household surveys, marketing margins, distributional impact.
    JEL: Q12 Q13 Q17 Q18
    Date: 2009
  4. By: David L. Tschirley; Miltone Ayieko
    Abstract: After reviewing trends in the production and marketing of fresh produce for the domestic market in Kenya since 1997, this paper presents detailed information on the structure of the flow of this produce from rural areas to wholesale markets in Nairobi and from those wholesale markets to assorted retail markets. Market shares are estimated by product for geographic areas supplying Nairobi, and for each important wholesale and retail market in the city. It is found that horticultural production for the domestic market is keeping up with rural population growth but not with the much faster urban population growth. The urban wholesaling and retailing system has decentralized dramatically and with little planning over the past two decades in response to lack of investment in public market places. In the current system, all participants are subjected to high costs and poor quality, and many traders, especially but not only those in kiosks, are subject to theft and even bodily injury. Collaborative planning for new investment between city officials and farmer- and trader organizations is badly needed; positive signs of movement in this direction include a more constructive approach to kiosks and joint public/private planning for a new wholesale market outside Nairobi. As new approaches to wholesaling and retailing are considered in response to Vision 2030, the continuing importance of existing market places means that complementary improvements in these markets, at the same time that investments in new markets are being made, will have major positive effects on farmers and consumers.
    Keywords: Africa, horticulture, market, production
    JEL: Q13
    Date: 2008–09
  5. By: Virginie DELBENDE; Maud HERBERT (labrii, ULCO)
    Abstract: Les préoccupations éthiques guident depuis longtemps la consommation de certains individus. Toutefois, la consommation dite « responsable » sort peu à peu de la confidentialité et des circuits de distribution spécialisés en se démocratisant, notamment grâce à une diffusion plus large de produits bio et équitable et de labels « sociaux » dans les circuits de distributions traditionnels. En conséquence, les « consommateurs responsables » sont désormais plus nombreux, tout comme leurs motivations. Dans ce contexte d’évolution récente, nous proposons un état de l’art de la littérature en comportement du consommateur en nous focalisant plus particulièrement sur les outils de mesure des préoccupations éthiques du consommateur.
    Abstract: For several decades ethical concerns have guided the consumption of certain individuals. However, so-called "responsible" consumption is gradually moving out of the shadows and the specialized distribution channels. It is more and more widespread, in particular through a wider distribution of bio and fair products and "social" labels by traditional channels. Accordingly, the "responsible consumers" are now more numerous, as are their motivations. In this context of recent developments, we propose a state of the art of literature in consumer behavior by focusing specifically on the measurement of ethical concerns of consumers. Key words: socially responsible behavior, consumer, measurement, ethics
    Keywords: social responsible behavior, consumer, measurement, ethics
    JEL: I30 R21 Q57
    Date: 2009–02
  6. By: Els Wynen
    Abstract: Some consumers and environmentalists espouse purchasing food that is produced locally or nationally. An appealing expression of this is the “food miles” concept, which reflects the aim of minimizing the distance food has traveled before reaching the consumer. The concept of food miles is flawed because it ignores the costs of production, the mode and scale of transport, and the importance of other inputs such as capital and labor. Nonetheless, the notion has become popular recently with the rise in the costs of both food and transport. Indeed, some organizations that set standards for organic certification are considering incorporating, or have already incorporated, food miles into their standards, including a ban on air freighted goods. As a result, exporters, including those in some developing countries, may lose their markets in developed countries, especially in Europe. This approach may make consumers and foreign producers worse off, and may lead to increases in global energy use and emissions, contrary to the stated objectives.[ADBI WP NO 118]
    Keywords: Consumers; environmentalists; non-renewable sources; organic agriculture; Soil Association’s; Ethical Trade; Fairtrade Foundation’s standard; UK Department for Environment, Food and Rural Affairs; Indicator of Sustainable Development; consumer price; consumer behavior; unpriced externalities; tariff barriers; climate change;Food security; UNCTAD; emission levels
    Date: 2009
  7. By: Farasat A.S. Bokhari (Department of Economics, Florida State University); Gary M. Fournier (Department of Economics, Florida State University)
    Abstract: In this paper, we exploit a novel approach for instrumenting a differentiated products demand system for therapeutically equivalent drugs. Using unusually detailed sales data on psychostimulant drugs, used to treat Attention Deficit Hyperactivity Disorder (ADHD), we are able to identify and measure substitution patterns across a range of drugs. We find that the demand for ADHD drugs is quite elastic and there are significant substitution possibilities among these drugs, both within the molecule and form, as well as across the segments. In addition, the first-time introduction of a generic drug shows large welfare gains due to expansion of the market to price sensitive consumers. Further, the welfare gains due to the introduction of me-too drugs vary by the novelty of the drug, and for significantly new varieties can be as large as those of the introduction of a generic. Our results bear policy implications for both, the speed with which new drugs are approved for marketing, as well as for actions among pharmaceutical firms that may delay the entry of a generic drug.
    Keywords: Differentiated products demand, multistage budgeting, AIDS model, psychostimulant drugs, new introductions, welfare analysis
    JEL: I10 I18 L65 L40 L50
    Date: 2009–05
  8. By: Daunfeldt, Sven-Olov (The Ratio Institute); Rudholm, Niklas (The Swedish Retail Institute (HUI)); Rämme, Ulf (The Swedish Retail Institute (HUI))
    Abstract: Did the introduction of congestion charges in Stockholm city reduce retail revenues? Data from 20 shopping malls - 8 within the toll area, and 12 outside the tool area - and from a sample of retail stores located along the main shopping streets was analyzed using an intervention-control approach. Favorable outcomes, such as reduced traffic, less emissions of carbon-dioxide, and perceived improvements in air quality and accessibility, do not seem to have been offset by reduced revenues for retailers located within the toll area.
    Keywords: Road toll; congestion fee; congestion charge; retail revenues; retail profts
    JEL: D12 H31 L81
    Date: 2009–05–07
  9. By: Tobias Regner (Max Planck Institute of Economics, Jena)
    Abstract: We analyse pricing, effort and tipping decisions in the online service "Google Answers" While users set a price for the answer to their question ex ante, they can additionally give a tip to the researcher ex post. In line with the related experimental literature we find evidence that tipping is motivated by reciprocity, but also by reputation concerns among frequent users. Moreover, researchers seem to adjust their effort based on the user's previous tipping behaviour. An efficient sorting takes place when enough tip history is available. Users known for tipping in the past receive higher effort answers, while users with an established reputation for non-tipping tend to get low effort answers. In addition, we analyse how tipping is adopted when the behavioural default is not to tip and estimate minimum levels for the fraction of genuine reciprocator and imitator types.
    Keywords: social preferences, reciprocity, moral hazard, reputation, Internet, psychological game theory
    JEL: C24 C70 C93 D82 L86
    Date: 2009–05–11

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