nep-mkt New Economics Papers
on Marketing
Issue of 2009‒12‒19
nine papers chosen by
Joao Carlos Correia Leitao
Polytechnic Institute of Portalegre and Technical University of Lisbon

  1. Mascots, design characteristics and children: Does affective response match with cognitive response? By Ana Côrte-Real; Paulo Lencastre
  2. The importance of the Web technologies during the communication process between a company and its clients By Ţarca, Naiana; Vatuiu, Teodora; Popa, Adela
  3. Communication and Procedural Models of the E-commerce Systems By Suchánek, Petr
  4. Optimal investment in age-structured goodwill By Silvia Faggian; Luca Grosset
  5. Predicting web site audience demographics for web advertising targeting using multi-web site clickstream data By K. W. DE BOCK; D. VAN DEN POEL;
  6. Modeling complex longitudinal consumer behavior with Dynamic Bayesian Networks: An Acquisition Pattern Analysis application By A. PRINZIE; D. VAN DEN POEL
  7. Investment in Intangible Assets in Canada: R&D, Innovation, Brand, and Mining, Oil and Gas Exploration Expenditures By Baldwin, John R.; Gu, Wulong; Lafrance, Amélie; Macdonald, Ryan
  8. Food products' cycle of life By Antonescu, Eugenia
  9. Price Dispersion, Search Externalities, and the Digital Divide By Manfred Nermuth; Giacomo Pasini; Paolo Pin; Simon Weidenholzer

  1. By: Ana Côrte-Real (Faculdade de Economia e Gestão, Universidade Católica Portuguesa (Porto)); Paulo Lencastre (Faculdade de Economia e Gestão, Universidade Católica Portuguesa (Porto))
    Abstract: This research addresses the question of how mascots design characteristics affect children recognition and affective response of this type of brand sign. Regarding the literature, it was clear for us the important contribution in studying the short and long term recognition. It is found that the different design characteristics associated with the universal design principles (abstraction, figurativity, symmetric, asymmetric, round and angular forms) stimulated different levels of recognition and affection among the children. The study contributes to our understanding of which mascot design characteristics increase the effectiveness of non-verbal communication.
    Keywords: Branding Semiotics, Brand Identity, Brand Marketing, Brand Response
    Date: 2009–12
  2. By: Ţarca, Naiana; Vatuiu, Teodora; Popa, Adela
    Abstract: In order to face the new market environment which is in constant change, the company must place the customer in the center of its attention. As a result, the company will not follow, first of all, the benefit brought by a certain successful business, but to develop long-term business relationships with the same customers. The integration of Web technologies has an important place into the process of accomplishing companies’ objectives to increase the competitiveness degree on the market by generating customers’ loyalty. Developing a web-site makes it possible a very good communication with the clients , and this leads, finally, to a constant adaptation of the company’s offer to the continuously changing customers’ requests.
    Keywords: client-oriented marketing; website; customer relationship management; performance through quality; centralized databases
    JEL: O33 O3
    Date: 2009–09–01
  3. By: Suchánek, Petr
    Abstract: E-commerce systems became a standard interface between sellers (or suppliers) and customers. One of basic condition of an e-commerce system to be efficient is correct definitions and describes of the all internal and external processes. All is targeted the customers´ needs and requirements. The optimal and most exact way how to obtain and find optimal solution of e-commerce system and its processes structure in companies is the modeling and simulation. In this article author shows basic model of communication between customers and sellers in connection with the customer feedback and procedural models of e-commerce systems in terms of e-shops. Procedural model was made with the aid of definition of SOA.
    Keywords: E-commerce; decision-making processes; customer requirements; customer feedback; e-commerce processes; CRM; models.
    JEL: O10 C87 C88 O32 M29 C89 M11 O30 L21 M21
    Date: 2009–10
  4. By: Silvia Faggian (Dept. of Applied Mathematics, University of Venice); Luca Grosset (Dipartimento di Matematica Pura ed Applicata, University of Padua)
    Abstract: Segmentation is a core strategy in modern marketing and age-specific segmentation, which is based on the age of the consumers, is very common in practice. A characteristic of age-specific segmentation is the change of the segments composition during time, which may be studied only using dynamic advertising models. Here, we assume that a firm wants to promote and sell a single product in an age segmented market and we model the awareness of this product using an infinite dimensional Nerlove- Arrow goodwill as a state variable. Assuming an infinite time horizon, we use some dynamic programming techniques to solve the problem and to characterize both the optimal advertising effort and the optimal goodwill path in the long run. An interesting feature of the optimal advertising effort is an anticipation effect with respect to the segments considered in the target market due to the time evolution of the segmentation.
    Keywords: Segmentation; infinite dimensional Nerlove-Arrow goodwill.
    JEL: C61 C62 M37 E22
    Date: 2009–11
  5. By: K. W. DE BOCK; D. VAN DEN POEL;
    Abstract: Several recent studies have explored the virtues of behavioral targeting and personalization for online advertising. In this paper, we add to this literature by proposing a cost-effective methodology for the prediction of demographic web site visitor profiles that can be used for web advertising targeting purposes. The methodology involves the transformation of web site visitors’ clickstream patterns to a set of features and the training of Random Forest classifiers that generate predictions for gender, age, educational level and occupation category. These demographic predictions can support online advertisement targeting (i) as an additional input in personalized advertising or behavioral targeting, in order to restrict ad targeting to demographically defined target groups, or (ii) as an input for aggregated demographic web site visitor profiles that support marketing managers in selecting web sites and achieving an optimal correspondence between target groups and web site audience composition. The proposed methodology is validated using data from a Belgian web metrics company. The results demonstrate that Random Forests demonstrate superior classification performance over a set of benchmark algorithms. Further, the ability of the model set to generate representative demographic web site audience profiles is assessed. The stability of the models over time is demonstrated using out-of-period data.
    Keywords: demography prediction, demographic targeting, web advertising, Random Forests, web user profiling, clickstream analysis
    Date: 2009–11
    Abstract: Longitudinal consumer behavior has been modeled by sequence analysis. A popular application involves Acquisition Pattern Analysis exploiting typical acquisition patterns to predict a customer’s next purchase. Typically, the acquisition process is represented by an extensional, unidimensional sequence taking values from a symbolic alphabet. Given complex product structures, the extensional state representation rapidly evokes the state-space explosion problem. Consequently, most authors simplify the decision problem to the prediction of acquisitions for selected products or within product categories. This paper advocates the use of intensional state definitions representing the state by a set of variables thereby exploiting structure and allowing to model complex, possibly coupled sequential phenomena. The advantages of this intensional state space representation are demonstrated on a financial-services cross-sell application. A Dynamic Bayesian Network (DBN) models longitudinal customer behavior as represented by acquisition, product ownership and covariate variables. The DBN provides insight in the longitudinal interaction between a household’s portfolio maintenance behavior and acquisition behavior. Moreover, it exhibits adequate predictive performance to support the financial-services provider’s cross-sell strategy comparable to decision trees but superior to MulltiLayer Perceptron neural networks.
    Keywords: state space representation, longitudinal, sequence analysis, acquisition pattern analysis, cross-sell, analytical Customer Relationship Management
    Date: 2009–08
  7. By: Baldwin, John R.; Gu, Wulong; Lafrance, Amélie; Macdonald, Ryan
    Abstract: This paper presents estimates of intangible investment in Canada for the purpose of innovation, advertising and resource extraction. It first expands upon work by Beckstead and Gellatly (2003), Baldwin and Hanel (2003), Beckstead and Gellatly (2003), Beckstead and Vinodrai (2003) and Baldwin and Beckstead (2003) who argue that the scope of innovative activity extends beyond research and development (R&D) as defined by the Frascati Manual. It extends the definition of innovative activities to include all scientific and engineering expenditures - regardless of whether they are market-based or produced with a firm. The paper also considers expenditures on intangible items such as brands or resource exploration. The paper contributes to the existing literature by creating intangible investment estimates (science and engineering knowledge, advertising, mineral exploration by industry) using Statistics Canada's high quality and internally consistent databases. It produces estimates that accord with other intangibles studies (Corrado, Hulten and Sichel 2005, 2006; Jalava, Ahmavarra and Alanen 2007) and shows that traditional R&D type investment estimates account for about a quarter of intangible science and engineering investments.
    Keywords: Science and technology, Innovation, Research and development
    Date: 2009–12–02
  8. By: Antonescu, Eugenia
    Abstract: For determining the durability of a food product it is essential to correctly select the quality characteristics, the weight factor of those determined through sensorial evaluations having to be in accordance with the weight factor of measurable characteristics. Quality testing for determining and checking the durability, and therefore the expiry date, has to be done by experiments, analyzes and calculations which have in mind certain aspects of the use value of food products . In order for these evaluations to be conclusive, they have to be performed under certain storage conditions foreseen by standards.
    Keywords: science of commodities; term of validity; durability; consumption; alimentary safety; work specific proofs; physical – chemical and sensorial characteristics; methods of merchandise analysis; informational systems; fabrication technology; risk; producer; trader; consumer; market.
    JEL: L66 L00
    Date: 2009–12–10
  9. By: Manfred Nermuth; Giacomo Pasini; Paolo Pin; Simon Weidenholzer
    Abstract: We propose a model of price competition where consumers exogenously differ in the number of prices they compare. Our model can be interpreted either as a non–sequential search model or as a network model of price competition. We show that i) if consumers who previously just sampled one firm start to compare more prices all types of consumers will expect to pay a lower price and ii) if consumers who already sampled more than one price sample (even) more prices then there exists a threshold –the digital divide– such that all consumers comparing fewer prices than this threshold will expect to pay a higher price whereas all consumers comparing more prices will expect to pay a lower price than before.
    JEL: D43 D85 L11
    Date: 2009–12

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