nep-mkt New Economics Papers
on Marketing
Issue of 2010‒03‒28
five papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Silent Communication - A Challenge to Established Marketing Communication Practice By Strandvik, Tore; Finne, Åke
  2. Marketing U.S. Organic Foods: Recent Trends From Farms to Consumers By Dimitri, Carolyn; Oberholtzer, Lydia
  3. Price Competition under Limited Comparability By Piccione, Michele; Spiegler, Ran
  4. Emerging Issues in the U.S. Organic Industry By Greene, Catherine; Dimitri, Carolyn; Lin, Biing-Hwan; McBride, William; Oberholtzer, Lydia; Smith, Travis
  5. The Influence of Installed Technologies on Future Adoption Decisions: Empirical Evidence from E-Business By Koellinger, Ph.D.; Schade, C.

  1. By: Strandvik, Tore (Hanken School of Economics); Finne, Åke (Hanken School of Economics)
    Abstract: Purpose The paper examines the concept of silent communication and its implications in marketing communication. It defines silent communication and proposes an analytic framework enabling an expanded view of marketing communication. Design/methodology/approach By explicitly adopting a customer-oriented perspective, combined with insights from service marketing and relationship communication, the paper extends current models of marketing communication. Findings The paper identifies different types of silent communication and presents new perspectives on marketing communication. The authors outline a framework for understanding how the company can/cannot control different forms of marketing communication and discuss the implications of this. Research implications/limitations The paper concentrates on a conceptual analysis, offering a number of empirical illustrations. The conceptual development creates new research issues that should lead to a deeper understanding of customers’ meaning creation, actions and reactions. Practical implications Silent communication constitutes a managerial challenge as it is often invisible to the management. The paper points to the need to develop methods to reveal the effects of silent communication as well as create guidelines for managerially handling silent communication. Originality/value The customer-based perspective and the focus on silent communication provide a completely new approach to analysing and understanding marketing communication. The paper contributes to service marketing and marketing communication research by introducing conceptualisations of silent communication that have an interest for both academic research and practitioners.
    Keywords: silent communication; marketing communication; relationship communication; service-dominant logic; brand management
    Date: 2009–12–30
  2. By: Dimitri, Carolyn; Oberholtzer, Lydia
    Abstract: Organic foods now occupy prominent shelf space in the produce and dairy aisles of most mainstream U.S. food retailers. The marketing boom has pushed retail sales of organic foods up to $21.1 billion in 2008 from $3.6 billion in 1997. U.S. organic-industry growth is evident in an expanding number of retailers selling a wider variety of foods, the development of private- label product lines by many supermarkets, and the widespread introduction of new products. A broader range of consumers has been buying more varieties of organic food. Organic handlers, who purchase products from farmers and often supply them to retailers, sell more organic products to conventional retailers and club stores than ever before. Only one segment has not kept paceâorganic farms have struggled at times to produce sufficient supply to keep up with the rapid growth in demand, leading to periodic shortages of organic products.
    Keywords: Organic, organic food, marketing organic products, organic supply chain, producing organic products, handling organic products, organic price premiums, ERS, USDA, Agricultural and Food Policy, Marketing,
    Date: 2009–09
  3. By: Piccione, Michele; Spiegler, Ran
    Abstract: This paper studies market competition when firms can influence consumers' ability to compare market alternatives, through their choice of price "formats". We introduce random graphs as a tool for modelling limited comparability of formats. Our main results concern the interaction between firms' equilibrium price and format decisions and its implications for industry profits and consumer switching rates. We show that narrow regulatory interventions that aim to facilitate comparisons may have adverse consequences for consumer welfare. Finally, we argue that our limited-comparability approach provides a new perspective into the phenomenon of product differentiation.
    Keywords: price competition; industrial organization; limited comparability; bounded rationality; framing; consumer protection; product differentiation; complexity
    JEL: D18 C79 L13 D43
    Date: 2009–05–04
  4. By: Greene, Catherine; Dimitri, Carolyn; Lin, Biing-Hwan; McBride, William; Oberholtzer, Lydia; Smith, Travis
    Abstract: Consumer demand for organic products has widened over the last decade. While new producers have emerged to help meet demand, market participants report that a supply squeeze is constraining growth for both individual fi rms and the organic sector overall. Partly in response to shortages in organic supply, Congress in 2008 included provisions in the Food, Conservation, and Energy Act (2008 Farm Act) that, for the first time, provide fi nancial support to farmers to convert to organic production. This report examines recent economic research on the adoption of organic farming systems, organic production costs and returns, and market conditions to gain a better understanding of the organic supply squeeze and other emerging issues in this rapidly changing industry.
    Keywords: organic agriculture, farmers, handlers, consumers, organic production costs, organic supply, marketing organic products, organic label, organic price premiums, local food, organic food imports., Agricultural and Food Policy, Crop Production/Industries,
    Date: 2009–06
  5. By: Koellinger, Ph.D.; Schade, C. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: This paper studies the adoption times of various e-business technologies in a large sample of firms from 10 different industry sectors and 25 European countries between 1994 and 2002. The results show that the probability of adoption increases with the number of previously adopted e-business technologies. Hence, the more advanced a firm is in using e-business technologies, the more likely it is to adopt additional e-business technologies, provided technologies do not substitute each other in their functionalities. This result is relevant for the marketing of new technologies, strategic planning and, from an economic perspective, for the convergence of growth across regions.
    Keywords: technology adoption;e-business;IT;digital divide
    Date: 2010–03–02

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