nep-mkt New Economics Papers
on Marketing
Issue of 2009‒07‒17
seven papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. Strategic Coopetition of Global Brands: A Game Theory Approach to ‘Nike + iPod Sport Kit’ Co-branding By Rodrigues, Flávio; Souza, Victória; Leitão, João
  2. Managing Global Customers By Yip, G.S.
  3. Uniqueness seeking and demand estimation in the German automobile industry By Marco Guerzoni; Rene Soellner
  4. The structure of herring product demand in Russia By Lien, Kristin; Tveterås, Ragnar; Tveterås, Sigbjørn
  5. A Simple Model of Foreign Brand Penetration under Monopolistic Competition By Kikuchi, Toru
  6. Firms’ Innovative Performance: The Mediating Role of Innovative Collaborations By Lee, Lena; Wong, Poh Kam
  7. Non-price Competition, Real Rigidities and Inflation Dynamics By Francesco Turino

  1. By: Rodrigues, Flávio; Souza, Victória; Leitão, João
    Abstract: Co-branding can be implemented by establishing an agreement of strategic coopetition that allows companies to compete and cooperate simultaneously in order to obtain competitive advantages through operational synergy. With this type of agreement, brands enter markets sharing loyal customers they would be unlikely to reach individually. The main advantages associated with implementation of this form of strategic coopetition are the possibility of jointly communicating brand image, reputation and credibility in a global market where consumers tend to have homogeneous preferences and convergent lifestyles. The strategic coopetition between two global brands, Apple and Nike, through development of the ‘Nike+iPod Sport Kit’ product, serves as a benchmark to illustrate the benefits associated with implementation of coopetitive cooperation agreements. From application of the game theory, simulation of a game of strategic coopetition provided results that confirm global brands obtain benefits, albeit not in equal measure, in terms of adding value to the brand image at a world level.
    Keywords: Co-branding; Coopetition; Global brands; Growth of brand value.
    JEL: M31 O32 M13
    Date: 2009–07–07
  2. By: Yip, G.S. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: Multinational companies need to manage their relationships with multinational customers in a globally integrated approach. This paper provides a systematic framework for developing and implementing such global customer management programmes. The paper is based on Chapter 1 of George S. Yip and Audrey Bink, Managing Global Customers: An Integrated Approach, Oxford University Press, 2007. The book takes a strategic, total business, and not just sales approach to managing global customers. It also takes a customer as well as a supplier perspective. The book provides guidance on both strategy and implementation. Lastly, the book takes a systematic and logic driven approach, yet provides many creative insights and practical advice. The primary supporting research is a study on global customer-supplier management with primary research conducted at 22 multinational companies, both global suppliers and global customers. This research involved personal interviews with over 60 senior executives, as well as a detailed multi-level survey completed by 27 executives. The authors obtained information on the way global customer-supplier relationship programmes can be implemented, the barriers that can be encountered and best practices that can lead to extra advantage.
    Keywords: global marketing;global customers;global account management
    Date: 2009–06–19
  3. By: Marco Guerzoni (Friedrich-Schiller University Jena, Faculty of Economics and Business Administration); Rene Soellner (Graduate School "The Economics of Innovative Change", Jena)
    Abstract: This paper empirically analyzes the determinants of demand in the German automobile industry. Our primary goal is to refine the existing literature on that topic by exploring the impact of uniqueness seeking behaviour of individuals on the demand schedule. Using a dataset on the segment of compact cars in the German market, we show that consumers have an intrinsic need for uniqueness seeking, and the degree a product satisfies this need is to be considered as an additional product characteristic.
    Keywords: Demand Estimation, Discrete Choice, Differentiated Products
    JEL: D12 L11 L15 L62
    Date: 2009–07–08
  4. By: Lien, Kristin (Norwegian Seafood Export Council); Tveterås, Ragnar (University of Stavanger); Tveterås, Sigbjørn (University of Stavanger)
    Abstract: Russia is experiencing deep structural changes in many areas. For the seafood industry important developments are large increases in household incomes, development of modern super- and hypermarket distribution channels, and product innovations. In the seafood category consumers are adopting new species and new product forms at a rapid rate. Herring is one of the species that is experiencing these changes. The dominant product form has traditionally been whole salted herring, typically sold at open markets. Herring sold in the traditional unprocessed form has been a protein source for poor people, consumed at home. But more processed and expensive product forms that are distributed through modern distribution channels have increased their market share during the data period. <p> We employ a panel data set on monthly per capita demand for different herring products in six Russian regions, from unprocessed to value added products, to test hypotheses on the structure of herring consumption. We estimate dynamic panel data demand systems, with region-specific estimates of price and income elasticities. The six regions in the data set have large differences in average per capita income. Our econometric estimates indicate significant structural regional differences in per capita consumption of different products, also after controlling for income differences. We find that whole herring is generally an inferior good, whereas fillet herring products tend to be normal goods. This suggests that if incomes continue to increase, consumption will shift further from unprocessed to value added herring products.
    Keywords: seafood; demand
    JEL: M20
    Date: 2009–04–28
  5. By: Kikuchi, Toru
    Abstract: The main purpose of this study is to illustrate, with a simple monopolistic competition trade model, how trade liberalization (i.e., a decline in trade costs) can affect domestic entrepreneurs' decisions between domestic brands and foreign brands, and thus the degree of foreign brand penetration. It is shown that, as trade costs decrease, more entrepreneurs choose to provide foreign brands. However, the impact of trade liberalization (in terms of changes in profit levels) becomes smaller as more entrepreneurs switch to foreign brands.
    Keywords: Foreign brand penetration; trade liberalization; monopolistic competition
    JEL: F12
    Date: 2009
  6. By: Lee, Lena; Wong, Poh Kam
    Abstract: While existing studies have provided many insightful discussions on the antecedents to innovative collaborations and the benefits of collaborative behavior, few studies have focused on the mediating role of innovative collaborations in enhancing the firm’s technological innovative performance. In this paper, we investigate the mediating role of the firm’s innovative collaborations in the relation between government innovation support and the firm’s product and process innovation intensities. As a mediating factor in the innovation process, innovative collaborations form part of the innovative inputs that contribute to the firm’s product and process innovation intensities. Using arguments derived from the resource-based theory, we found that while receipts of government innovation support help increase the firm’s level of innovative inputs as observed in its collaboration intensity, it is equally important for firms to internalize management practices that encourage maximum leverage of government innovation support for pursuits of innovative collaborations. In a similar vein, while innovative collaborations are necessary for realizing innovative outputs including product and process innovations, it is not a sufficient condition for achieving strong innovative performance. The firm’s internal capabilities as observed in its learning, R&D, resource allocation, manufacturing, marketing, organizing, and strategic planning abilities have a positive influence on the relationship between innovative collaborations and innovative outputs.
    Keywords: Innovative Performance; Innovative Collaboration; Firm’s Contextual Factors
    JEL: D23 M1 O32
    Date: 2009–06–19
  7. By: Francesco Turino (Universidad de Alicante)
    Abstract: In the last decade, the analytical progress achieved in the New Keynesian literature has been remarkable. Many of the early assumptions have been relaxed, leading to medium-scale macroeconomic models that are now able to capture many features of real-world data. Nevertheless, modern-day New Keynesian models still assume, as did their early counterparts, that firms compete in the market with no tools other than their relative prices. In particular, this literature has so far neglected the consequences of extending competition between firms to the non-price dimension. This paper tries to fill this gap by enriching the canonical New Keynesian framework to include both price and non-price competition. This has important consequences for the analysis of inflation dynamics, modifying in particular the inflation-marginal cost relationship. As a general result, we show that any activity by firms that boosts demand for their products, without directly affecting their prices, dampens the overall degree of real rigidities in price-setting.
    Keywords: Non-price competition, inflation dynamics, real rigidity
    JEL: E31 L11
    Date: 2009–07

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