nep-mkt New Economics Papers
on Marketing
Issue of 2009‒07‒03
eight papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. New trends in consumers behavior on banking products and services By Pistol, Gheorghe; Ogarca, Angela
  2. Advertising for Attention in a Consumer Search Model By Marco A. Haan; José Luis Moraga-González
  3. A Viral Branching Model for Predicting the Spread of Electronic Word-of-Mouth By Lans, R.J.A. van der; Bruggen, G.H. van; Eliashberg, J.; Wierenga, B.
  4. Measuring Power And Satisfaction in Societies with Opinion Leaders: Dictator and Opinion Leader Properties By René van den Brink; Agnieszka Rusinowska; Frank Steffen
  5. Unpriced Quality By Pascal Courty
  6. Opportunity for luxury brands in China By Ronald Jean Degen
  7. Demand Side Analysis of Microlending Markets in Germany By Alexander S. Kritikos; Christoph Kneiding; Claas Christian Germelmann
  8. A Dynamic Model of Price Discrimination and Inventory Management at the Fulton Fish Market By Graddy, Kathryn; Hall, George

  1. By: Pistol, Gheorghe (Universitatea Spiru Haret, Facultatea de Finante si Banci); Ogarca, Angela (Universitatea Spiru Haret, Facultatea de Finante si Banci)
    Abstract: Consumer behavior means acts, processes and social relations that show individuals, groups and organizations, when obtaining, use or consumption of goods and services. Consumer behavior analysis must be conducted from a systemic perspective in the system (consumer behavior) being the man (the buyer). Consumer behavior of banking products and services presents a number of peculiarities regarding the content and its forms of manifestation, the adoption decision-making process to purchase, as well as its formative factors. Knowledge of such behavior presents an overwhelming importance for the institution of banking activity Consumer behavior analysis is the main purpose of gathering information to be used by the bank for a proper foundation for its marketing policy in general, to adopt appropriate strategies in relation to all the mix, mainly of product strategy, strategy price, distribution strategy and promotional strategy.
    Keywords: consumer behavior; mix; strategies
    JEL: G32 M31
    Date: 2009–06–16
  2. By: Marco A. Haan (University of Groningen); José Luis Moraga-González (University of Groningen)
    Abstract: We model the idea that when consumers search for products, they first visit the firm whose advertising is more salient. The gains a firm derives from being visited early increase in search costs, so equilibrium advertising increases as search costs rise. This may result in lower firm profits when search costs increase. We extend the basic model by allowing for firm heterogeneity in advertising costs.
    Keywords: Advertising; attention; consumer search; saliency
    JEL: D83 L13 M37
    Date: 2009–04–16
  3. By: Lans, R.J.A. van der; Bruggen, G.H. van; Eliashberg, J.; Wierenga, B. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: In a viral marketing campaign an organization develops a marketing message, and stimulates customers to forward this message to their contacts. Despite its increasing popularity, there are no models yet that help marketers to predict how many customers a viral marketing campaign will reach, and how marketers can influence this process through marketing activities. This paper develops such a model using the theory of branching processes. The proposed Viral Branching Model allows customers to participate in a viral marketing campaign by 1) opening a seeding email from the organization, 2) opening a viral email from a friend, and 3) responding to other marketing activities such as banners and offline advertising. The model parameters are estimated using individual-level data that become available in large quantities already in the early stages of viral marketing campaigns. The Viral Branching Model is applied to an actual viral marketing campaign in which over 200,000 customers participated during a six-week period. The results show that the model quickly predicts the actual reach of the campaign. In addition, the model proves to be a valuable tool to evaluate alternative what-if scenarios.
    Keywords: branching processes;Markov processes;forecasting;online marketing;viral marketing;word of mouth
    Date: 2009–05–15
  4. By: René van den Brink (VU University Amsterdam); Agnieszka Rusinowska (Université Lumière Lyon); Frank Steffen (The University of Liverpool - Management School (ULMS))
    Abstract: A well known and established model in communication policy in sociology and marketing is that of opinion leadership. Opinion leaders are actors in a society who are able to affect the behavior of other members 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 different alternatives. For marketing or policy purposes it is interesting to investigate the effect of different opinion leader-follower structures in markets or 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 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 from the individual choices. Using bipartite digraphs we introduce satisfaction and power scores which allow us to analyze the actors' satisfaction and power with respect to the collective choice for societies with different opinion leader-follower structures. Moreover, we study common dictator and opinion leader properties of the above scores and illustrate our findings for a society with five members.
    Keywords: Bipartite digraph; influence; inclination; collective choice; opinion leader; follower; satisfaction; power; dictator properties; opinion leader properties
    JEL: C7 D7
    Date: 2009–06–11
  5. By: Pascal Courty
    Abstract: A monopolist deliberately charges the same price for differentiated products when high quality products are more likely to be allocated to low type consumers under uniform pricing. The argument can explain the use of ‘unpriced quality’ for concert tickets, sport events, and in many other situations.
    Keywords: Price discrimination, second degree price discrimination, queuing, rationing
    JEL: D42 D45
    Date: 2009
  6. By: Ronald Jean Degen (International School of Management Paris)
    Abstract: Given the scale of the Chinese market, international luxury brand to continue or become successful must win in China to continue wining in the rest of the world. Chinese yuppies are driving the demand, buying everything from expensive watches to imported cars. Those that are able to gain and maintain a preferential share of these Chinese affluent consumers will be able to sustain their global image and compete in equal terms with the future emerging Chinese luxury brands. The reason Chinese affluent men and women buy Rolex watches and Louis Vuitton bags are not simply because of the Swiss craftsmanship or French design. Their motivation to buy these luxury brands has its roots in the more complex Confucian values and demand for social recognition, and the growing influence of Western values. For this reason it is important to understand the roots and changes of the culture and values that determine the buying behavior of the modern Chine affluent consumer.
    Keywords: Luxury brands in China; China affluent consumer; Chinese yuppies; The Me generation; The young emperor generation
    JEL: M0 M1
    Date: 2009–06–17
  7. By: Alexander S. Kritikos; Christoph Kneiding; Claas Christian Germelmann
    Abstract: In developing and transition economies, microlending has become an effective instrument for providing micro businesses with the necessary financial resources to launch operations. In the industrialized countries, with their highly developed banking systems, however, there has been ongoing debate on the question of whether an uncovered demand for microlending services exists. The present pilot study explores customer preferences for microlending products in Germany. Among the interviewed business owners, 15% reported revolving funding needs and an interest in microloans. We find that potential recipients of microloan products are retail business owners, foreign business owners, and persons who had previously received private loans. Furthermore, financial products should feature rapid access to short-term loans.
    Keywords: Entrepreneurship, Microlending, Market Research
    JEL: G21 D12 M31
    Date: 2009
  8. By: Graddy, Kathryn; Hall, George
    Abstract: We estimate a dynamic profit-maximization model of a fish wholesaler who can observe consumer characteristics, set individual prices, and thus engage in third-degree price discrimination. Simulated prices and quantities from the model exhibit the key features observed in a set of high quality transaction-level data on fish sales collected at the Fulton fish market. The model’s predictions are then compared to the case in which the dealer must post a single price to all customers. We find the cost to the dealer of posting a uniform price to be extremely small.
    Keywords: dynamic programming; fish; indirect inference; price discrimination; yield management
    JEL: C15 D21 D4 L1 L81
    Date: 2009–06

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