nep-mkt New Economics Papers
on Marketing
Issue of 2009‒09‒26
nine papers chosen by
Joao Carlos Correia Leitao
Polytechnic Institute of Portalegre and Technical University of Lisbon

  1. « Retail Brand Equity: A PLS Approach By Magali Jara
  2. Conational Drivers Influencing Brand Preference among Consumers By Rajagopal
  3. Business Marketing of the Agricultural Co-operatives Association in Aomori Prefecture in the l900s and l910s: Building Cooperative Relationships among the Association, Associate partners, and Wholesalers By Izumi Shirai
  4. Street Markets Influencing Consumer Behavior in Urban Habitat By Rajagopal
  5. The Strategic Role of Marketing Communication in he SME: the Case of Fornari SpA By Marco Cioppi; Andrea Buratti
  6. Carcass Quality Volume and Grid Pricing: An Investigation of Cause and Effect By Scott W. Fausti; Bashir A. Qasmi; Jing Li
  7. A Marketing Scheme for Making Money off Innocent People: A User's Manual By Basu, Kaushik
  8. Strategies to Fight Ad-sponsored Rivals By Ramon Casadesus-Masanell; Feng Zhu
  9. Price and promotion effects of supermarket mergers By Davis, David E.

  1. By: Magali Jara (CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes I - Université de Caen)
    Abstract: In large retail stores, France is characterized by market saturation and even a decline of several retail concepts such as variety stores, or even supermarkets and hypermarkets (Cliquet, 2000). This situation leads to a fierce competition and raises questions which affect marketing strategies of French retail companies. Given the legal context, the French retailers can increase sales through retail brands which appear to be henceforth among the most effective marketing tools. Indeed, product innovation, sophisticated packaging and retail brands - from generic products to premium retail brands (Kumar and Steenkamp, 2007) - could create consumer value. There are thus today real retail branding strategies consisting in creating consumer value leading to the idea of retail brand equity.This paper focuses on retail brand equity to understand where this retail brand value stems from and how to measure it in the French retail context. Adapting the brand equity literature to the retail brand opens large perspectives in the way of considering this type of brands helping managers to examine the importance of components in the shaping of their brand value and finally to develop better strategic and tactical decisions concerning retail brand positioning.Keller's contributions (Keller, 1993), qualitative methodology and confirmatory analysis are used to first conceptualise and measure a model of retail brand equity. All measures of the model built here are validated. The model is validated through a Path-PLS modelling process. This methodological choice is recommended when formative and reflective variables are integrated in the model (Jarvis et al., 2003). A replication is made to confirm the model validity.Retail brand equity is composed of two components: awareness, and retail brand image (which is measured by perceived quality, price image, personality, brand name and store service). All of these components influence positively and significantly the retail brand purchase (except the store service which influence negatively the retail brand purchase). Retail brand awareness and perceived quality are the two main components which determine the retail brand purchase. Results show also that the retail brand image is a partial mediator on the relation between retail brand awareness and its purchase. This research reveals finally that the retail brand equity can be moderated by the product category and the retail brand strategy. The retail brand equity is higher on basic products than on symbolic ones. The strategy of service brand applied to retail brands seems to be more favorable than classical private label strategy.
    Keywords: retail brands, brand equity, retailers' strategies, confirmatory analysis, Path-
    Date: 2009
  2. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: Consumers recognize brands by building favorable attitude towards them and through the purchase decision process. Brand preference is understood as a measure of brand loyalty in which a consumer exercises his decision to choose a particular brand in presence of competing brands. This study aims at discussing the cognitive factors that determine brand preference among consumers based on empirical research. Brand attributes including emotions, attitudes, personality, image, reputation and trust which influence consumer perceptions and temporal association with brands are critically examined in the study. The study reveals that higher brand relevance and trust build strong the association of consumers with brand in long-run.
    Keywords: Cognitive behavior, brand identity, personality traits, brand association, brand image, trust, corporate reputation, mass market, brand preference, consumer value
    JEL: D10 M31 L81
    Date: 2009–02
  3. By: Izumi Shirai (Graduate School of Economics, Osaka University)
    Abstract: This article analyzed the business marketing of the Agricultural Co-operatives Association established in Takedate Village in the Tsugaru district of Aomori Prefecture in 1907. In the early stages of the Meiji period, this area was considered as backward in terms of commodity production and circulation. However, the Agricultural Co-operatives Association has been highly evaluated for its business marketing across the nation ever since the mid-1910s, and has built a brand name for itself, We obtained the followings results. (1) By means of production inspection before packaging, the association made an effort toward not only the production of high-quality apples but also their trusted shipment in accordance with the brand name and standards established for itself. All these were extremely advanced efforts in agricultural commodity transactions. (2) However, until the early 1910s, the business sales of the association encountered certain problems. One problem was that the association partners had illegally sold apples to merchants and therefore, could not gather enough apples to sell. Another problem was that the specification wholesalers in the great city did not make all their payments smoothly. While being such status, the association thought much of the trust and the autonomy at the partners and the wholesales. It supported without laying down compulsion and a penalty regulation. (3) The problems mentioned in the above point were solved after the association received special awarding in 1916. The association became flagrant nationwide and succeeded in establishing a brand name image. The partners recognized that apples sold on behalf of the association should be done so at favorable prices. As the associationfs apples became famous in the markets of consuming regions, wholesalers came to recognize special wholesale contracts with this association as an honor. Consequently, the association grew to be an economic organization that took the initiative in product sales to wholesalers even in important cities such as Tokyo.
    Keywords: Japanese Economic History, Agricultural Co-operatives Association, Business Marketing, Market
    JEL: N55 N75 N85
    Date: 2009–09
  4. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: This study explores the influence of street markets in urban geo-demographic settings and analyzes vending patterns with ethnic values enhancing the consumer satisfaction. Interrelationship among urban dwellers, marketplace ambiance, and conventional shopping wisdom of customers and interactive customer relations are also addressed in the study based on empirical survey. Research on street markets is very limited though some studies are available on street vendors with focus on spatial planning, political interventions, and legal rights. This study on street markets contributes significantly to the existing literature in reference to shopping behavior and perceptional values of urban consumers..
    Keywords: Street markets, consumer behavior, ethnic markets, sales differentiation, market attractiveness, consumer satisfaction
    JEL: M31 O18 R12
    Date: 2009–08
  5. By: Marco Cioppi (University of Urbino (Italy)); Andrea Buratti (University of Urbino (Italy))
    Abstract: In this paper we discuss the strategic importance of communication and Intranet for theItalian Small and Medium Enterprise (SMEs). We analyse the case of Fornari SpA, an Italian medium size clothing and shoes manufacturer that uses internet as a communication tool. The aim of this study is to understand the potential of internet in a specific case and to understand whether internet is a strategic tool or only an operative tool. The firm currently uses two applications of internet: extranet and intranet. The analysis underlines the importance of marketing competences and training that are absolutely necessary to make the most effectiveand efficient use of the internet potential.
    Keywords: SME, ICT, Internet Marketing.
    JEL: M30 M31
    Date: 2009
  6. By: Scott W. Fausti (Department of Economics, South Dakota State University); Bashir A. Qasmi (Department of Economics, South Dakota State University); Jing Li (Department of Economics, South Dakota State University)
    Abstract: The relationship between publicly reported weekly grid premiums and discounts for specific carcass characteristics and the percentage of those characteristics reflected in total weekly slaughter volume (i.e., proportional slaughter volume) is investigated. Granger Causality and multi-lag VAR models were used to investigate if grid premiums and discounts were efficiently transmitting market signals to producers with respect to carcass quality attributes. The empirical evidence indicates that there is little evidence to suggest that grid prices are providing efficient price signals to buyers and sellers with respect to market valuation of desirable and undesirable beef carcass characteristics.
    Keywords: grid pricing, price discovery, price reporting, slaughter cattle
    JEL: Q18 Q13
    Date: 2009–01
  7. By: Basu, Kaushik (Cornell University)
    Abstract: Firms often give away free goods with the product that they sell. Firms often give stock options to their top management and other employees. Mixing these two practices--giving stock options to consumers who buy the firm's product--, creates a deadly brew. Large numbers of consumers can be lured into buying this product, giving the entrepreneur huge profits and the consumers a growing profit share. But this is a camouflaged Ponzi that will ultimately crash. By analogy it is argued that the common practice of giving stock options to employees can be a factor behind financial crashes.
    JEL: D92 G18 G32 L20 M30
    Date: 2009–06
  8. By: Ramon Casadesus-Masanell (Strategy Unit, Harvard Business School); Feng Zhu (Management and Organization, Marshall School of Business, University of Southern California)
    Abstract: We analyze the optimal strategy of a high-quality incumbent that faces a low-quality ad-sponsored competitor. In addition to competing through adjustments of tactical variables such as price or advertising intensity, we allow the incumbent to consider changes in its business model. We consider four alternative business models, two pure models (subscription-based and ad-sponsored) and two mixed models that are hybrids of the two pure models. We show that the optimal response to an ad-sponsored rival often entails business model reconfigurations, a phenomenon that we dub "competing through business models." We also find that when there is an ad-sponsored entrant, the incumbent is more likely to prefer to compete through a pure, rather than a mixed, business model because of cannibalization and endogenous vertical differentiation concerns. We discuss how our study helps improve our understanding of notions of strategy, business model, and tactics in the field of strategy.
    Keywords: Strategy, Business models, Tactics, Ad-sponsored, Subscription-based
    JEL: L12 L13 M21
    Date: 2009–09
  9. By: Davis, David E. (Department of Economics, South Dakota State University)
    Abstract: I use a unique data set of retail food prices to analyze mergers between supermarket chains. The data allow for an examination of the effects of mergers on prices, the frequency of promotions, and the depth of promotions. I find that increases in a chain’s share of the total US food sales are associated with price decreases, suggesting that supermarkets enjoy economies of scale and/or benefit from an improved bargaining position relative to their suppliers after a merger. I also find that mergers are associated with decreases in the frequency and depth of price-promotions.
    Keywords: Food prices, supermarket, merger, price discrimination
    JEL: L11 L81 D4
    Date: 2009–09

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