|
on Marketing |
|
Issue of 2009‒10‒24
eight papers chosen by Joao Carlos Correia Leitao Polytechnic Institute of Portalegre and Technical University of Lisbon |
| By: | Babur De los Santos (Kelley School of Business, Indiana University); Ali Hortacsu (University of Chicago); Matthijs R. Wildenbeest (Kelley School of Business, Indiana University) |
| Abstract: | Using a large data set on consumers' web browsing and purchasing behavior we contrast various classical search models. We find that the benchmark model of sequential search with a known distributions of prices can be rejected based on the recall patterns we observe in the data. Moreover, we show that even if consumers are initially unaware of the price distribution and have to learn the price distribution, observed search behavior for given consumers over time is more consistent with non-sequential search than sequential search with learning. Our findings suggest non-sequential search provides a more accurate description of observed consumer search behavior. We then utilize the non-sequential search model to estimate the price elasticities and markups of online book retailers. |
| Keywords: | search costs, sequential search, fixed-sample search, non-sequential search, online browsing, online book industry, consumer search |
| JEL: | L80 L81 D80 D83 L10 L11 |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:0923&r=mkt |
| By: | de Mello, Luiz; Pires, Ricardo |
| Abstract: | Wine consumers rely mainly on the label on the bottle to infer the quality of its content. But there is little empirical research on how colours can be interacted with shapes in the design of wine labels. This study draws from an experiment using data from Spain and shows that there are strong preferences for selected colour-shape combinations in label design. Surprisingly, colour alone does not elicit as strong preferences as certain shapes do, at least when they are assessed irrespectively of the shapes featured in the label. Other combinations, on the other hand, are very resilient, especially those that contain colour hues, such as brown, yellow, black and green, in labels with salient rectangular and hexagonal patterns. |
| Keywords: | wine labels, Marketing, |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aawewp:53885&r=mkt |
| By: | Heffetz, Ori; Shayo, Moses |
| Abstract: | Elementary consumer theory assumes that prices affect demand only because they affect the budget constraint (BC). By contrast, several models suggest that prices can affect demand through other channels (e.g. because they signal quality). This alternative conjecture is consistent with evidence from marketing studies. However, neither theory nor evidence is informative regarding the magnitude of non-BC effects. The key econometric challenge arises from the fact that a change in prices typically also changes the BC. This paper uses a lab and a field experiment to disentangle BC from non-BC effects of prices on demand. In our lab experiment we find that, consistent with marketing evidence, prices positively affect stated willingness to pay. However, when examining actual demand, non-BC price elasticities are considerably smaller than BC price elasticities and are often statistically insignificant. Further, these non-BC elasticities do not increase with product uncertainty. Finally, we do not detect any non-BC effects in our field experiment. |
| Keywords: | consumer behavior, demand, price, quality signals, experiments, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Marketing, D01, D12, D8, M31, |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aawewp:53882&r=mkt |
| By: | Ndanga, Leah Z.B.; Louw, Andre; van Rooyen, Johan |
| Abstract: | Although South Africans are not predominantly wine drinkers, the industry is looking for ways to develop the local market to balance exports. The black middle class, increasingly referred to as the Black Diamonds are the most powerful marketing trend in the last 10 years as they have emerged as the strongest buying influence in the economy and making inroads in understanding this market presents a good opportunity. The study asserts that the key factors influencing the South African consumersâ behavior are age, gender, income, race and wine drinking history. The study also asserts that not only are the black middle class are different from the white middle class but within the Black Diamonds different segments exist. The industry should particularly focus on marketing to the women and the âStart me upâ age group in the group as there is limited consumer knowledge about wines, but a high willingness to experiment. The study also suggests various new brand communication platforms that can be explored to reach this market as well as co-opetition between industry stakeholders. |
| Keywords: | Black Diamonds, wine consumer behavior, alcoholic beverages, Agribusiness, Demand and Price Analysis, |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aawewp:53884&r=mkt |
| By: | Anindya Ghose (Stern School of Business, NYU); Sang Pil Han (Stern School of Business, NYU) |
| Abstract: | Consumer adoption and usage of mobile communication and multimedia content services has been growing steadily over the past few years in many countries around the world. In this paper, we develop and estimate a structural model of user behavior and learning with regard to content generation and usage activities in mobile digital media environments. Users learn about two different categories of content: content from regular Internet social networking and community (SNC) sites and that from mobile portal sites. Then they can choose to engage in the creation (uploading) and consumption (downloading) of multi-media content from these two categories of websites. In our context, users have two sources of learning about content quality: (i) direct experience through their own content creation and usage behavior and (ii) indirect experience through word-of-mouth such as the content creation and usage behavior of their social network neighbors. Our model seeks to explicitly explain how direct and indirect experiences from social interactions influence the content creation and usage behavior of users over time. We estimate this model using a unique dataset of consumers mobile media content creation and usage behavior over a 3-month time period. Our estimates suggest that when it comes to user learning from direct experience, the content that is downloaded from mobile portals has the highest level of quality. In contrast, content that is downloaded by users from SNC websites has the lowest level of quality. Besides, the order of magnitude of signal accuracy for each content type from the direct experience is consistent with the order of true quality level. This finding implies that in the context of mobile media users make content choices based on their perception of differences in both content quality level and content quality variation. Further we find that signals about the quality of content from direct experience are more accurate than signals from indirect experiences. Potential implications for mobile phone operators and advertisers are discussed. |
| Keywords: | structural modeling, mobile media, mobile portals, Internet websites, uploading content, downloading content, dynamic programming, simulated maximum likelihood estimation |
| JEL: | C40 D12 D83 L96 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:0924&r=mkt |
| By: | Vastola, Antonella; Tanyeri-Abur, Aysen |
| Keywords: | organic viticulture, wine, Agribusiness, Farm Management, Marketing, |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aawewp:53886&r=mkt |
| By: | Tobias Langenberg (Free University of Berlin) |
| Abstract: | This paper examines a two-period duopoly where consumers are locked-in by switching costs that they face in the second period. The paper's main focus is on the question of how the consumer lock-in affects the firms' choice of product durability. We show that firms may face a prisoners' dilemma situation in that they simultaneously choose non-durable products although they would have higher profits by producing durables. From a social welfare perspective, firms may even choose an inefficiently high level of product durability. |
| Keywords: | Consumer Lock-in, Product Durability, Duopoly |
| JEL: | L13 D21 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:trf:wpaper:279&r=mkt |
| By: | Heli Koski; Tobias Kretchmer |
| Abstract: | ABSTRACT : Most existing empirical work on technology diffusion assumes technologies to remain constant throughout the diffusion process. However, many consumer technologies improve significantly over time. Using data on the characteristics of new mobile handsets over a ten-year period and controlling for potential endogeneity problems, we find that handset quality and variety had a significant impact on the global diffusion of mobile telephony. Our estimation results further suggest that earlier empirical studies on diffusion may have attributed too much of diffusion to network effects. |
| JEL: | L96 O33 |
| Date: | 2009–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1200&r=mkt |