nep-mkt New Economics Papers
on Marketing
Issue of 2009‒08‒16
eight papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. Does traceability play a role in retailerâs strategies for private labels? By Banterle, Alessandro; Souza Monteiro, Diogo M; Stranieri, Stefanella
  2. Consumersâ attitudes toward labelling of ethical products: The case of organic and Fair Trade products By Annunziata, Azzurra; Ianuario, Sara; Pascale, Paola
  3. Investigating Thai Shopping Behaviour: Wet-Markets, Supermarkets and Food Quality By Gorton, Matthew; Sauer, Johannes; Supatpongkul, Pajaree
  4. Coverage of Retail Stores and Discrete Choice Models of Demand: Estimating Price Elasticities and Welfare Effects By Franco Mariuzzo; Patrick Paul Walsh; Ciara Whelan
  5. Position Auctions with Consumer Search By Susan Athey; Glenn Ellison
  6. How can marketing theory be applied to policy design to deliver on sustainable agriculture in England? By Barns, S.A.; Willoughby, B.E.; Kaine, G.; Lourey, R.; Murdoch, H.
  7. Nonparametric Identification of Multinomial Choice Demand Models with Heterogeneous Consumers By Steven T. Berry; Philip A. Haile
  8. Business opportunities in local food supply chains: an investigation in England and Australia By Pearson, David; Bailey, Alison

  1. By: Banterle, Alessandro; Souza Monteiro, Diogo M; Stranieri, Stefanella
    Abstract: Traceability is helping retailers manage food safety risks and support product differentiation. This paper aims to investigate how traceability may be used to screen supplier for private labels dedicated provider pools. Retailers in the UK and Italy have several private label product lines and increasingly select dedicated suppliers. The choice of providers is a typical agency problem as retailers contract the production for their private labels, having incomplete information on types and effort of their suppliers. Different contracts must be designed for suppliers of private labels depending on position of the product line and its food safety risk. A case study, based on the second largest Italian retailer reveals that traceability and quality assurance schemes are used together to manage suppliers of private labels
    Keywords: Traceability, dedicated providers, food products, retailing, vertical coordination, Marketing, Q13, Q18, L81, L66, L15,
    Date: 2009–04–01
  2. By: Annunziata, Azzurra; Ianuario, Sara; Pascale, Paola
    Abstract: Increasing interest from consumers in ethical characteristics of processes and products is leading to an increase of demand for organic and FT (fair trade) products and at the same time the need for more information. Indeed, the ethical attributes are credence goods and therefore cannot be checked by consumers. Labelling plays an increasing role as an instrument of direct shopping aid allowing the consumer to evaluate that he would not otherwise be able to know. In the case of ethical food products the purpose of labelling is to help consumers make a distinction between competing product alternatives and choose the most ethical acceptable option. The object of this paper is to investigate the factors which influence consumer attitudes to use labelling information in purchasing organic and FT products and to verify if labelling is a valid tool of direct shopping aid to consumers, with a view to derive inferences that may contribute to better strategic and tactical marketing decisions. A quantitative survey with 300 consumers, living in the south of Italy, was conducted in order to explore consumers' knowledge and attitudes toward labelling of organic and FT products. The data were submitted to exploratory and segmentation analysis. The results indicate significant differences in consumer attitudes and behaviour for ethical products and show the importance of new variables, other than demographic characteristics, that can influence the purchasing behaviour and label information use
    Keywords: ethical consumer, labelling information, organic and fair trade products, Consumer/Household Economics, D8, D12,
    Date: 2009–04–01
  3. By: Gorton, Matthew; Sauer, Johannes; Supatpongkul, Pajaree
    Abstract: An analysis of primary survey data on Thai shopping behavior seeks to understand the relative satisfaction of consumers with wet markets and supermarkets and identify the factors that affect frequency of visit to, and purchase behavior within, these retail outlets. This is used as a basis for engaging in wider debates on the âsupermarket revolutionâ in Asia. On all salient attributes affecting retail outlet choice, wet markets are perceived, in general, to be inferior to supermarkets. However for fresh produce sales, wet markets retain an advantage. Both socio-economic characteristics and retail outlet attributes are considered as determinants of food shopping behavior. Bootstrapped bivariate ordered probit models identify that those using wet markets more frequently are older and characterized by lower incomes and educational achievement. Bootstrapped bivariate Tobit models reveal that those purchasing a higher proportion of fresh produce from wet markets do so based on product quality and do not regard wet markets as lacking cleanliness. Visit data are consistent with Reardonâs model of supermarket diffusion.
    Keywords: Food choice, retail, Thailand., Consumer/Household Economics, D12, L81, P46,
    Date: 2009–04–01
  4. By: Franco Mariuzzo (The Geary Institute University College Dublin); Patrick Paul Walsh (SPIRe and The Geary Institute University College Dublin); Ciara Whelan (Univesity College Dublin)
    Abstract: Since retail stores tend to host a subset of products available in the market, Ackerberg and Rysman (2005) allow logit errors to represent idiosyncratic unobserved consumer preferences over retail stores and products. Having product level data on store coverage we are able to estimate their logit, nested logit and random coefficients logit models of product demand jointly with cost, in a structural model of equilibrium, for Carbonated Soft Drink products. As Ackerberg and Rysman’ (2005) Monte Carlo study suggests; using standard logit errors does lead to predictable biases in estimated price elasticities and welfare. A counterfactual that imposes full coverage of stores by products, in our structural equilibrium, increases the estimated price elasticities and welfare. Competition in markets is more curtailed than assumed when one works with standard logit errors.
    Keywords: Carbonated Soft Drinks, Differentiated products, discrete choice, Store coverage, structural model, price elasticities, welfare.
    JEL: L11 L62
    Date: 2009–07–21
  5. By: Susan Athey; Glenn Ellison
    Abstract: This paper examines a model in which advertisers bid for "sponsored-link'' positions on a search engine. The value advertisers derive from each position is endogenized as coming from sales to a population of consumers who make rational inferences about firm qualities and search optimally. Consumer search strategies, equilibrium bidding, and the welfare benefits of position auctions are analyzed. Implications for reserve prices and a number of other auction design questions are discussed.
    JEL: D44 L86 M37
    Date: 2009–08
  6. By: Barns, S.A.; Willoughby, B.E.; Kaine, G.; Lourey, R.; Murdoch, H.
    Abstract: Marketing theory was applied to develop a qualitative tool to predict levels of compliance based on involvement with the issue (policy objective) and involvement with the intervention (regulation). Based on an understanding farmer decision-making, the I3 Response Framework can help identify strategies that can strongly influence compliance, providing more efficient targeting of resources for policy. We report on further testing by application to the issue of water quality and the regulations around slurry storage as part of the Nitrate Pollution Prevention Regulations 2008 as applicable to dairy farmers in the Derwent catchment of North Yorkshire, England
    Keywords: Policy, I3 Response Framework, involvement, water quality, slurry storage, Nitrogen Vulnerable Zone, regulation, Nitrate Pollution Prevention Regulations 2008, NPPR2008, Agricultural and Food Policy,
    Date: 2009–04–01
  7. By: Steven T. Berry (Cowles Foundation, Yale University); Philip A. Haile (Cowles Foundation, Yale University)
    Abstract: We consider identification of nonparametric random utility models of multinomial choice using "micro data," i.e., observation of the characteristics and choices of individual consumers. Our model of preferences nests random coefficients discrete choice models widely used in practice with parametric functional form and distributional assumptions. However, the model is nonparametric and distribution free. It allows choice-specific unobservables, endogenous choice characteristics, unknown heteroskedasticity, and high-dimensional correlated taste shocks. Under standard "large support" and instrumental variables assumptions, we show identifiability of the random utility model. We demonstrate robustness of these results to relaxation of the large support condition and show that when it is replaced with a weaker "common choice probability" condition, the demand structure is still identified. We show that key maintained hypotheses are testable.
    Keywords: Nonparametric identification, Discrete choice demand, Differentiated products
    JEL: C35
    Date: 2009–09
  8. By: Pearson, David; Bailey, Alison
    Abstract: There is widespread support from Government, media and consumers for local food networks. The profile of local food buyers and their expectations has been explored and we have some knowledge of its social, economic and environmental contribution. This research contributes by exploring the structure and scope of local food activities. This paper reports on a one year scoping study that examined local food within two contrasting countries, England and Australia. It used a literature review and interviews with key stakeholders to identify the business opportunities that exist in this sector. In conclusion there are many more local food activities in England than in Australia. Further, at a national level in both countries it remains fragmented and confused. However, at a local level there are many successful businesses - farmers markets are the most successful business model in England and Australia, with box schemes also working well in England. The research priorities are to develop a clearer definition of local food as well as exploring the possibility of creating some form of consumer assurance for the âlocalnessâ of foods.
    Keywords: local food, business, England, Australia, Community/Rural/Urban Development,
    Date: 2009–04–01

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