nep-mkt New Economics Papers
on Marketing
Issue of 2009‒09‒19
four papers chosen by
Joao Carlos Correia Leitao
Polytechnic Institute of Portalegre and Technical University of Lisbon

  1. Do private labels generate customer loyalty in food retailing? By Wettstein, Nadine; Brosig, Stephan; Glauben, Thomas; Hanf, Jon H.; Loy, Jens-Peter
  2. Markets fo Heterogeneous Products: a Boundedly Rational Consumer Model By Marco Valente
  3. Consumer acceptance of genetically modified rapeseed-oil: A discrete-choice-experiment By Klein, Agnes; Zapilko, Marina; Menrad, Klaus; Gabriel, Andreas
  4. Linking small producers to supermarkets? The role of intermediaries on the fresh fruit and vegetable market in Turkey. By Bignebat, Celine; Koc, Ali; Lemeilleur, Sylvaine

  1. By: Wettstein, Nadine; Brosig, Stephan; Glauben, Thomas; Hanf, Jon H.; Loy, Jens-Peter
    Abstract: The increase of private labels in food retailing and retailers' high expenditures for establishing them raise one central question: Do consumers really consider private labels as "real" brands and develop loyalty towards them. We analyse a four year panel data set on frozen pizza purchases to study differences in consumers' repurchasing behaviour between two strong national brands and private labels. In sum, our results show significant differences. However, the observable repurchase behaviour can not fully reflect the attitudinal component of brand loyalty. So subsequently, we present potential approaches to identify the underlying attitudinal component.
    Keywords: food retailing, private labels, brand loyalty, panel data, hazard analysis, Consumer/Household Economics, Marketing,
    Date: 2009–10
  2. By: Marco Valente
    Abstract: The paper is based on the acknowledgement that properties of markets stemming from features of demand are too frequently overlooked in the economic literature, and a re-balancing is necessary to properly account for theoretical and empirical phenomena. We sustain that one of the most relevant reasons for the neglect of the role of demand is the lack of an adequate representation of consumers. This claim is particu- larly relevant for evolutionary economics since its critique to the mainstream approach stopped at the representation of firms. The standard utility maximization approach to consumers? theory is even less defensible than the related assumption of producers? rationality, given the lack of competitive pressure on consumers. As a contribution to this theoretical gap, the paper presents a model for consumer based on the assumption of bounded rationality and inspired to the literature on experimental psychology. The proposed model can be applied to multi-dimensional products/services and relies on intuitive and potentially observable parameters, allow- ing for a wide range of theoretical and empirical applications. Moreover, the intrinsic structure of the model provides a clear definition of preferences, meant as ex-ante decisional criteria, distinguished from post-hoc justification of any decisional result. Though structurally simple, the proposed model is very flexible and allows for a clear exploration of the impact of specific demand features on the produced results. Several experiments show that the model can be successfully applied both to generate standard results and to implement complex configurations such as those of generated by large markets with heterogeneous products. Among the results presented, the most relevant concerns the identification of two classes of market segmentation, generated by the identical suppliers and demand?s ex- ogenous factors, but different consumers? decisional mechanisms. The results produced are observationally equivalent, but are shown to have radically different properties, and are proposed as initial elements of a taxonomy for the classification demand classes, likely to explain common properties across different markets.
    Keywords: Evolutionary Economics, Consumer Theory, Bounded Rationality, Marketing and Preferences, Simulation Models, Market Structure
    JEL: C63 D11 D81 L10 L15 M30
    Date: 2009–09–08
  3. By: Klein, Agnes; Zapilko, Marina; Menrad, Klaus; Gabriel, Andreas
    Abstract: This paper deals with consumer acceptance of genetically modified rapeseed-oil in Germany and analyzes under which conditions consumers would buy such products. To investigate this subject a Discrete-Choice-Experiment was performed within the framework of a cross-European consumer survey in spring 2007. The results show that consumersâ utility is increased by an organically produced product and decreased by a GM product. Thereby the association with individual advantages (health benefits) decreases consumersâ utility less compared to the association with environmental benefits. Additionally, it could be shown that German consumers prefer locally produced rapeseed-oil compared to imported. If GM products exhibit a considerable price discount compared to conventional products, a certain market potential for GM rapeseed-oil exists in Germany. But the granting of discounts must be carefully balanced especially against the background of profitability for producers and processors.
    Keywords: Consumer behavior, GM food, rapeseed-oil, Discrete-Choice-Experiment, Food Consumption/Nutrition/Food Safety,
    Date: 2009–10
  4. By: Bignebat, Celine; Koc, Ali; Lemeilleur, Sylvaine
    Abstract: A wide range of the empirical studies shows to what extend the rise of supermarkets in developing countries deeply transform domestic marketing channels. In particular, the exclusion of small producers from the so-called dynamic marketing channels (that is remunerative ones) is at stake. Based on original data collected in Turkey in 2007 at the producer and the wholesale market levels, we show that the intermediaries are decisive in order to understand the impact of downstream restructuring (supermarkets) on upstream decisions (producers). The results show first that producers are not aware of the final buyer of their produce, as intermediaries hinder the visibility of the marketing channel, their choice is restricted to that of the first intermediary. Moreover, the econometric results conclude that producers who are indirectly linked to the supermarkets are more sensitive to their requirements in terms of quality and packaging than to the price premia they set accordingly to the effort made to meet their standards. Therefore, the results question the role of the wholesale market agents who act as a buffer in the chain and protect small producers from negative shocks, but who stop positive shocks as well, and reduce incentives.
    Keywords: supermarkets, small farmers, fresh fruit and vegetables, Turkey, Agribusiness, Production Economics, Q13, L14, D24,
    Date: 2009–08–20

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