nep-mkt New Economics Papers
on Marketing
Issue of 2010‒02‒20
five papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. The Path to Purchase During Shopping By Piyush Kumar Sinha; Gopi Krishnaswamy
  2. Environmental Labeling By Andrea Podhorsky
  3. Retailer Choice and Loyalty Schemes - Evidence from Sweden By Lundberg, Johan; Lundberg, Sofia
  4. The Systematization of Disturbances Act upon E-commerce Systems By Suchánek, Petr; Vymětal, Dominik; Dolák, Radim

  1. By: Piyush Kumar Sinha; Gopi Krishnaswamy
    Abstract: The proposed study aims to identify and analyse the path to purchase for shoppers. This study will attempt to understand the impact of the major factors on the purchase behaviour of shoppers by examining purchase paths across different product categories signifying different shopping orientations; across culturally distinct regions; and across different stages of retail evolution.
    Keywords: communication, internet, retailers, fashion appeal, shops, buying decision, shopping, purchase, shoppers, product, shopping, regions, retail,
    Date: 2010
  2. By: Andrea Podhorsky (York University, Toronto)
    Abstract: This paper studies how information disclosed by voluntary environmental labels creates in- centives for firms to invest in environmentally-friendly production technologies. I develop a model with differentiated products and imperfectly-informed consumers. Consumers care about the environmental characteristics of goods (for example, how they were produced), but cannot directly observe these product characteristics. Firms differ in their abilities to develop "clean" technologies, but have no incentive to do so absent government regulation or a policy that pro- vides information to consumers. A scheme of voluntary labels, awarded to firms that achieve some chosen level of environmental friendliness, gives some firms enough incentive to develop clean technologies, while others choose to produce "dirty" goods. Each consumer is individu- ally ineffective in reducing aggregate environmental damage but consumers purchase products according to how they privately value environmental quality. I parameterize the relationship between the environmental quality consumers experience privately from their own consumption of a product and the intensity of its environmental damage. I use the model to explain how voluntary labels improve consumer welfare and characterize the welfare maximizing labeling standard. I also contrast the effects of a labeling program on consumer welfare with those of compulsory environmental regulation.
    Keywords: credence goods, disclosure, environmental policy, firm heterogeneity and product labeling.
    JEL: L15 Q58
    Date: 2009–12
  3. By: Lundberg, Johan (Department of Economics, Umeå University); Lundberg, Sofia (Department of Economics, Umeå University)
    Abstract: From economic theory, it is known that consumer loyalty schemes can have lock-in effects resulting in entry barriers and higher prices. This paper concerns consumer loyalty schemes where the main issue is to test the hypothesis that loyalty scheme membership affects the choice of food retailer. This choice is modeled as a random utility maximization problem estimated with maximum likelihood. Based on a data set covering 1,551 Swedish households, we find evidence supporting this hypothesis. Further, according to the results, store characteristics and geographical distance matter for the choice of retailer while household characteristics are not found to have a significant effect.
    Keywords: Bonus card; Conditional logit; Consumer choice; Distance; Food retailer; Loyalty scheme
    JEL: D12 L49 L66 L81 R10
    Date: 2010–02–09
  4. By: Suchánek, Petr; Vymětal, Dominik; Dolák, Radim
    Abstract: There are many processes on Internet, on web servers, in ERP and company running an e-commerce system which can be influenced by disturbances. In order to minimize their impact it is necessary to identify and collect all disturbances, to determine their evaluation metric and to propose necessary remedies. Modifications proposed should be tested by means of modeling taking internal and external environment needs into consideration. Necessary information can be captured using the e-commerce system components monitoring. Particular system environment properties like company structure, system architecture, hardware, software, methods of connection with the supplier´s e-commerce system, customer communication interface are to be taken into account. Important social indicators like legislative and economic development, development of the global information society and others should also be considered. Disturbance and failure models can be designed using various methods like e.g. multi-agents modeling, simulations, fuzzy methods modeling etc. Generic ecommerce system model using control circuit as a fundamental notion can be used as a base for modeling.
    Keywords: e-commerce system; disturbances; categorization of disturbances; modeling of disturbances; agent; simulation of disturbances
    JEL: C63 O30 O39 O31
    Date: 2009–08
  5. By: Reddy Nalla, Viayender; Veen, Jack van der; Venugopal, Venu (Nyenrode Business Universiteit)
    Abstract: This paper addresses pricing strategies in a serial supply chain (SC) consisting of a single Buyer, a single Supplier and where the end-consumers are comprised of two segments, each with a different willingness-to-pay. Under the assumption that the final demand and the segments’ willingness-to-pay are deterministic, sub-optimization occurs when the decisions on pricing strategies are decentralized. That is, for a wide range of parameter values, a decentralized SC set a higher price and selling to the high willingness-to-pay segment whereas setting a low price and selling to both the segments would have been more profitable for the SC as a whole. To overcome this issue, two coordinating mechanisms, namely revenue sharing and modified resale price maintenance (mRPM), are analyzed within the above SC setting. It is shown that for all parameter values there exist revenue sharing contracts and mRPM contracts, which can both coordinate the SC and lead to win-win opportunities.
    Keywords: Optimization, Value chain, Decision-making
    Date: 2009

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