nep-mkt New Economics Papers
on Marketing
Issue of 2009‒07‒11
six papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. Learning How to Consume and Returns to Product Promotion By Zakaria Babutsidze
  2. Electricity Retailing in Norway By Nils-Henrik M. Von Der Fehr; Petter Vegard Hansen
  3. Tuning an Online Shop: Consumer Reactions to E-tailers' Service Quality By Franz Hackl; Bernhard Weiss; Rudolf Winter-Ebmer
  4. Electronic Payment Instruments use, as perceived by consumers in Macedonia By Abdullai, Besim
  6. Price Incentives and Consumer Payment Behaviour By John Simon; Kylie Smith; Tim West

  1. By: Zakaria Babutsidze
    Abstract: This paper presents the computational model of consumer behaviour. We consider two sources of product specific consumer skill acquisition, termed here as learning how to consume: learning by consuming and consumer socialization. Consumers utilize these two sources in order to derive higher valuations for products they are consuming. In this framework we discuss the behavior of returns to product promotion relative to the changes in product characteristics, such as quality and user-friendliness, as well as in case of varying intensity of consumer socialization. The main finding is that in case of duopoly the dependence of returns to advertising on product quality is not monotonic as it has been claimed by earlier studies. Additional important finding indicating the importance of the models with interacting agents is that returns to advertising exhibit qualitatively different behavior in case of zero intensity of consumer socialization.
    Keywords: Consumer skills, learning by consuming, consumer socialization, product promotion, returns to advertising Length 23 pages
    JEL: D11 M37 C63
    Date: 2009–06
  2. 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: energy policy; electricity; electricity; Norway
    Date: 2009–02–15
  3. By: Franz Hackl; Bernhard Weiss; Rudolf Winter-Ebmer
    Abstract: This paper investigates the impact of service quality in e-tailing on site visits and consumer demand (approximated by the last-click- through concept). We use a large representative data set obtained from a price-comparison site which covers most of the national (Austrian) market on e-tailing. Customers' valuations for a broad range of 15 dif- ferent service characteristics are condensed by factor analysis. Negative binomial regressions analysis is used to measure the impact of princi- pal factors for service quality on referral requests to online shops and last-click-throughs for different product categories.
    Keywords: e-commerce, price comparison, horizontal service differentiation
    JEL: M31 L81 L25
    Date: 2009–06
  4. By: Abdullai, Besim
    Abstract: Electronic Payment Instruments in Macedonia are very used and spread evenly among the population, although compare to EU member countries their use is lagging behind. This paper represents findings about the customer behaviors toward e-commerce activities, use of electronic cards in Internet, at point of sales, and ATMs. The objective of this survey was to test the availability of Internet services to customers, the way they access Internet, the way they use EPI and EPS, and at the end to draw conclusions if they trust on e-businesses. The question to be answered is, what should be done to enhance the customer convenience: a) to increase the number of acceptance points, b) to increase the number of EPI in circulation, c) to have cheaper access in Internet, or d) to invest more in e-commerce applications.
    Keywords: Electronic Payment Instruments; customer survey; e-commerce; Internet services
    JEL: M1 D12 E42 G20
    Date: 2009–03
  5. By: Germà Bel; Xavier Fageda
    Abstract: This paper examines factors determining prices that airports charge to airlines. Using data for 100 large airports in Europe, we find that they charge higher prices when they move more passengers. Additionally, competition from other transport modes and other nearby airports imposes some discipline on the pricing behavior of airports. Low-cost carriers and airlines with a high market share seem to have a stronger countervailing power. Finally, we find that private airports not regulated charge higher prices than public or regulated airports. From our analysis, we can infer that market power of each airport is dependent upon its specific characteristics.
    Keywords: Privatization; regulation, pricing; air transportation; airports
    Date: 2009–06–09
  6. By: John Simon (Reserve Bank of Australia); Kylie Smith (Reserve Bank of Australia); Tim West (Reserve Bank of Australia)
    Abstract: In this paper we estimate the effect of particular price incentives on consumer payment patterns using transaction-level data. We find that participation in a loyalty program and access to an interest-free period, both of which lower the price of credit card use, tend to increase credit card use at the expense of alternative payment methods, such as debit cards and cash. Specifically, we find that a loyalty program increases the probability of credit card use by 23 percentage points and access to the interest-free period increases the probability by 16 percentage points. Interestingly, the pattern of substitution from cash and debit cards is different in each of these cases. A loyalty program reduces the probability of cash use by 14 percentage points and has little effect on debit card use, while access to the interest-free period has little effect on cash use but reduces the probability of debit card use by 19 percentage points. We find these effects to be economically significant and large enough that they can help to explain observed aggregate payments patterns. An implication is that the Reserve Bank reforms of the Australian payments system are likely to have influenced observed payment patterns.
    Keywords: consumer choice; retail payment systems; price incentives; loyalty programs
    JEL: C35 D12 G20
    Date: 2009–06

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