nep-mkt New Economics Papers
on Marketing
Issue of 2010‒01‒30
eight papers chosen by
Joao Carlos Correia Leitao
Polytechnic Institute of Portalegre and Technical University of Lisbon

  1. Business Marketing of the Agricultural Co-operatives Association in Aomori Prefecture in the l900s and l920s: Building Cooperative Relationships among the Association, Associate partners, and Wholesalers By Izumi Shirai
  2. SST and the Consumer Behaviour in Portuguese Financial Services By Maria Antónia Rodrigues; João F. Proença
  3. Deviation Among Technology Reviews: An Informative Enrichment of Technology Evolution Theory for Marketing By Sood, A.; Stremersch, S.
  4. Catching-up Trajectories in the Wine Sector: A Comparative Study on Chile, Italy and South Africa By Lucia Cusmano; Andrea Morrison; Roberta Rabellotti
  5. State of Competition in the Wholesale and Retail Sector By Ma. Teresa Dueñas-Caparas
  6. Choosing and using payment instruments: evidence from German microdata. By Ulf von Kalckreuth; Tobias Schmidt; Helmut Stix
  7. The Greenwashing Machine : is CSR more than Communication By Rémi Bazillier; Julien Vauday
  8. SEPA, efficiency, and payment card competition. By Wilko Bolt; Heiko Schmiedel

  1. 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, , Institution, Market
    JEL: N55 N75 N85
    Date: 2009–09
  2. By: Maria Antónia Rodrigues (Faculdade de Economia, Universidade do Porto, Instituto Politécnico do Porto, Instituto de Contabilidade e Administração); João F. Proença (Faculdade de Economia, Universidade do Porto)
    Abstract: Financial services, especially commercial banking has been introducing new self-service technologies (SST), in the contact with customers, which allows the customer to accede service in an autonomous and timeless form. This paper discusses the behaviour of users and non-users of self-service technologies (namely, ATMs, call center/telephone, and internet) in Portuguese banking services. An empirical study was carried out by means of a questionnaire. Data were collected on 300 individuals, representing a sample, by region, gender and age group, of the Portuguese population, age 18 and over, and living in mainland Portugal. The results call for a user’s profile and consumer’s behaviour of SST. The SST users reveal a higher intention of repurchase, propensity to complain and higher price sensibility than the non-users. They are younger and middle-aged individuals, with a medium and high level of education. The main contribution of the paper is that banking managers that invest in SST may expect more sales (as a result of consumers with higher intention of repurchase), more opportunities of recovering the service (as a result of consumers with higher propensity to complain), but more price competitiveness (as a result of a consumer behaviour more price sensible). The paper put in evidence that SST use is not sufficient to determine consumer satisfaction and positive word-of-mouth, and it is not a barrier to bank switching.
    Keywords: TSS (self-service technology), consumer’s behaviour, ATM, internet banking, telephone banking, Portugal
    JEL: M30
    Date: 2010–01
  3. By: Sood, A.; Stremersch, S. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: Understanding technological change is of critical importance to marketers, as it bears new markets, new brands, new customers, and new market leaders. This paper examines the deviation among reviews of a technology’s performance and its consequences for inferences on technology evolution patterns. The basic premise of the current paper is that technology evolution literature, while highly relevant, is misguided in that it ignores potential deviation among technology reviews. Using a comprehensive dataset of all published reviews, both before and after FDA approval, of 7 statins for cholesterol reduction (LDL) from 1982 to 2007, the authors find that: (1) there exists vast deviation among reviews of technology performance leading to systematic bias in the portrayal of the path of technology evolution, especially if one relies only on manufacturer’s claims, (2) such deviation does not fade over time, (3) technology review (study design) characteristics affect the stated performance and, (4) both higher technology performance and a higher deviation affect sales positively, also when one controls for a firm’s marketing expenditures. We discuss the implications of these findings for technology evolution theory, managerial practice and public policy.
    Keywords: technology evolution;reviews;performance;statins;sales;detailing;marketing;innovation
    Date: 2010–01–11
  4. By: Lucia Cusmano (Insubria University, Varese, and KITeS, Universita' Bocconi, Milano, Italy); Andrea Morrison (Uru - Utrecht University and KITeS - Bocconi University, Milan); Roberta Rabellotti (Università del Piemonte Orientale)
    Abstract: From a development perspective an investigation of the changes that have occurred in the wine industry is of particular interest because it provides evidence on how emerging economies have been able to acquire significant shares of the international market in a dynamic sector. Based on novel empirical evidence as well as secondary sources, this paper shows that emerging countries with diverse institutional models and innovation strategies, have been driving the process of technological modernization and product standardization. Newcomers in the wine sector have responded particularly effectively to changes in consumption habits, and in aligning emerging scientific approaches with institutional building efforts and successful marketing strategies.
    Keywords: MCatching up, Wine sector, Sectoral Systems, Chile, South Africa, Italy
    JEL: O13 O30 O38 O57
    Date: 2009–03
  5. By: Ma. Teresa Dueñas-Caparas (Philippine Institute for Development Studies)
    Abstract: The study assesses the state of competition in the Philippine wholesale and retail sector, focusing on the distribution of specialized goods and pharmaceutical products. It uses the traditional tools of analysis like concentration ratios and price-cost margins in determining the competitive state of the sector. The study also analyzes the other dimensions in retail competition like price, geographical location, retail product and retail service. Industry data from the National Statistics Office were used in the analysis, aided by a small-scale survey conducted in the Metro Manila area. The department store and grocery subsector appears to operate in a competitive environment despite the presence of two big dominating firms in the market. No price or quantity leader-follower behavior was observed, as validated by the tools used in the analysis. On the other hand, one firm, whose strategic advantages include economies of scope and space, retail image and consumer loyalty, dominates the distribution of pharmaceutical products. Potential market entrants face these forms of challenges—factors that are not regarded as anti-competitive and are welfare enhancing to the general public. The need for competition policy is recommended to guard against possible merger of the giant firms in the department store and grocery subsector. Any possible collusion between the big firms could result to a monopolistic outcome. The study observes that the apparent high price of pharmaceutical products is mainly attributed to the manufacturing process, and not at the distribution of these goods. Hence, it is recommended that a study analyzing the state of competitiveness of manufacturing pharmaceutical products be conducted.
    Keywords: competition policy, distribution sector, pharmaceutical products, and dimensions of competition
    JEL: L65
    Date: 2010–01
  6. By: Ulf von Kalckreuth (Deutsche Bundesbank, Wilhelm-Epstein-Str. 14, D-60431 Frankfurt am Main, Germany.); Tobias Schmidt (Deutsche Bundesbank, Wilhelm-Epstein-Str. 14, D-60431 Frankfurt am Main, Germany.); Helmut Stix (Oesterreichische Nationalbank, Otto-Wagner-Platz 3, 1090 Vienna, Austria.)
    Abstract: Germans are still very fond of using cash. Of all direct payment transactions, cash accounts for an astounding 82% in terms of number, and for 58% in terms of value. With a new and unique dataset that combines transaction information with survey data on payment behaviour of German consumers, we shed light on how individuals choose payment instruments and why cash remains so important. We propose a two-stage empirical framework which jointly explains credit card ownership and the use of cash. Our results indicate that the pattern of cash usage is compatible with systematic economic decision making. Consumers decide upon the adoption of payment cards and then use available payment media according to their transaction and personal characteristics, the relative costs of cash and card usage, and their assessment of payment instruments’ characteristics. Whereas older consumers use significantly more cash, the comparison with younger consumers shows that the difference in payment behaviour is not explained by age as such but to a large extent by differences in the characteristics of these two groups. It is interesting that the possession of a credit card, especially alongside a debit card, does not significantly affect the use of cash in Germany. JEL Classification: E41, E58, D12.
    Keywords: Payment instruments; payment cards; payment behaviour; payment innovation; cash usage; cash substitution; debit cards; credit cards; survey data.
    Date: 2009–12
  7. By: Rémi Bazillier (LEO - Laboratoire d'économie d'Orleans - CNRS : UMR6221 - Université d'Orléans); Julien Vauday (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, CEPN - Centre d'économie de l'Université de Paris Nord - CNRS : UMR7115 - Université Paris-Nord - Paris XIII)
    Abstract: Corporate Social Responsibility (CSR) and advertising are strategic complements. Short of assuming firms are pure benevolent, firms will consider CSR as beneficial if it contributes to their sales and/or profits. However, it could be that communicating on CSR represents by itself a good strategy. If the claim about the environmental or social benefits of the product is unsubstantiated or misleading, this practice is known under the name of GreenWashing (GW). If consumers do not discover there is no CSR, they may be attracted by a so-called CSR product because of the advertising. This paper provides both a theoretical and an empirical frameworks to explore this question. The model clearly identifies some “usual suspects” that will prefer GW over CSR. We then conduct an empirical analysis using data on CSR, economic data of the 500 largest European firms to test the predictions. Several instruments are used in order to estimate the propensity to prefer GW, such as the number of pages of sustainable development reports. The results confirm that there exist some “usual suspects”.
    Keywords: Corporate Social Responsibility ; Greenwashing ; Communication
    Date: 2009–07–03
  8. By: Wilko Bolt (De Nederlandsche Bank, Research Department, Postbus 98, 1000 AB Amsterdam, The Netherlands.); Heiko Schmiedel (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.)
    Abstract: This paper analyzes the welfare implications of creating a Single Euro Payments Area. We study the e®ects of increased network compatibility and payment scale economies on consumer and merchant card fees and its impact on card usage. In particular, we model competition among debit cards and between debit and credit cards. We show that competitive pressures dampen merchant fees and increase total card acceptance. The paper argues that there is room for multilateral interchange fee arrangements to achieve optimal consumer and merchant fees, taking safety, income uncertainty, default risk, merchant's pricing power, and the avoided cost of cash at the retailers side into account. Consumers and merchants are likely to benefit the most from the creation of SEPA when sufficient payment card competition alleviates potential monopolistic tendencies. JEL Classification: L11; G21; D53.
    Keywords: SEPA; card network competition; optimal pricing; economic welfare.
    Date: 2009–12

This nep-mkt issue is ©2010 by Joao Carlos Correia Leitao. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.