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on Marketing |
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Issue of 2010‒06‒11
nine papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Maria De Paola; Vincenzo Scoppa (Dipartimento di Economia e Statistica, Università della Calabria) |
| Abstract: | We analyze consumers’ reactions to negative information on product quality using daily scanner data at item level from a well-known supermarket chain. We focus on a fraud that in 2008 has involved a number of Italian leading firms in the cheese sector. Exploiting the fact that only some brands were mentioned by the media as being involved in the fraud, we adopt a difference-in-differences estimation strategy and evaluate the effects of the negative media coverage comparing changes in sales for involved and for not involved brands. It emerges that the negative news on product quality have induced consumers to shift their demand from involved to not involved brands. These effects persist overtime, also once the media was no more giving attention to the issue. Retailers have suffered part of the costs deriving from the diffusion of bad news on product quality: the margin gained on brands directly mentioned by media has decreased after the negative publicity. |
| Keywords: | Consumer Behavior, Product Quality, Firm Reputation, Scanner Data |
| JEL: | L14 L15 L66 Q11 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:201012&r=mkt |
| By: | M. GEUENS; P. DE PELSMACKER; T. FASEUR; |
| Abstract: | In contrast to the Affect Infusion Model, popular advertising planning grids suggest that emotional advertising is effective for low involvement and hedonic products, but not for high involvement or utilitarian products. In two experiments, 400 and 392 consumers respectively evaluate a non-emotional and a product-congruent or product-incongruent emotional appeal promoting four different product types. In a third study, 909 respondents evaluate 323 existing TV commercials. The findings confirm expectations based on the Affect Infusion model and indicate that for none of the product types negative effects of emotional advertisements appear. However, emotional ads do work better for some than other product types. In addition to clearing out the moderating role of product type, this paper contributes to the literature by showing that previous poorer results of emotional ads for some products may be partly due to less positive attitudes towards the products themselves instead of to the inappropriateness of the appeal. |
| Keywords: | ad effectiveness, emotional advertising, involvement, hedonic-utilitarian |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:10/646&r=mkt |
| By: | T. DE BOCK; P. VAN KENHOVE; |
| Abstract: | The present study investigates the influence of self-regulatory focus on consumer ethical beliefs (i.e., consumers’ judgment of various unethical consumer practices). The self-regulatory focus framework is highly influential and applies to an impressively wide spectrum of topics across a diverse array of domains. However, previous research has not yet examined the link between this personality construct and the consumer ethics field. Findings indicate that promotion affects one’s attitude toward questionable consumer practices with those having a stronger (versus weaker) promotion focus being more likely to believe these consumer misbehaviors to be acceptable. Further, this study shows that prevention influences one’s perception of morally dubious consumer practices with those having a stronger (versus weaker) prevention focus being more inclined to believe these questionable consumer activities to be unacceptable. |
| Keywords: | consumer ethical beliefs, consumer ethics, consumer ethics scale, personal characteristics, self-regulatory focus |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:10/653&r=mkt |
| By: | Gloria Helfand; Ann Wolverton |
| Abstract: | In modeling how the U.S. market responds to changes in national fuel economy standards, the question of how consumers evaluate trade-offs between the cost of consuming more fuel economy than they would otherwise choose and the expected fuel savings that result is potentially quite important. Consumer vehicle choice models are a means to predict the change in vehicle purchase patterns, as well as the effects of these changes on compliance costs and consumer surplus. This paper surveys the literature on consumer choice models and finds a wide range in methods and results. A large puzzle raised is whether automakers build into their vehicles as much fuel economy as consumers are willing to purchase. This paper examines possible reasons why there may be a gap between the amount consumers are willing to pay for fuel economy and the amount that automakers provide. |
| Keywords: | consumer behavior, vehicle purchase decision |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp200904&r=mkt |
| By: | Hackl, Franz; Kummer, Michael E.; Winter-Ebmer, Rudolf |
| Abstract: | Basu (2006) argues that the prevalence of 99 cent prices in shops can be explained with rational consumers who disregard the rightmost digits of the price. This bounded rational behaviour leads to a Bertrand equilibrium with positive markups. We use data from an Austrian price comparison site and find results highly compatible with Basu's theory. We can show that price points - in particular prices ending in 9 - are prevalent and have significant impact on consumer demand. Moreover, these price points are sticky; neither the price-setter itself wants to change them neither the rivals do underbid these prices, if they represent the cheapest price on the market. -- |
| Keywords: | Competitive Behaviour,Pricing Behaviour,E-Commerce,Pricing in the Nines,Focal Pricing |
| JEL: | L11 D41 C41 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10022&r=mkt |
| By: | Rutledge, Susan L. |
| Abstract: | The recent turmoil in financial markets worldwide has emphasized the need for adequate consumer protection and financial literacy for long-term stability of the financial sector. This Working Paper aims to summarize key lessons from reviews of consumer protection and financial literacy in nine middle-income countries of Europe and Central Asia (Azerbaijan, Bulgaria, Croatia, the Czech Republic, Latvia, Lithuania, Romania, the Russian Federationand Slovakia). All the country assessments used a systematic common approach, based on a set of Good Practices for Consumer Protection and Financial Literacy developed by the World Bank's Europe and Central Asia Region. The objective of the Working Paper is to contribute to the international dialog on strengthening financial consumer protection and financial literacy in emerging markets.A financial consumer protection regime should meet three objectives. First, consumers should receive accurate, simple, comparable information of a financial service or product, before and after buying it. Second, consumers should have access to expedient, inexpensive and efficient mechanisms for dispute resolution with financial institutions. Third, consumers should be able to receive financial education when and how they want it. A common challenge among the nine countries is the need of an adequate institutional structure for financial consumer protection. However independent of the specific institutional structures, financial consumers should have one single agency where to submit complaints and inquiries. Financial institutions should be required to apply fair, non-coercive and reasonable practices when selling and advertising financial products and services to consumers. Personal data should also be carefully protected. |
| Keywords: | Financial Literacy,Access to Finance,Emerging Markets,Debt Markets,Bankruptcy and Resolution of Financial Distress |
| Date: | 2010–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5326&r=mkt |
| By: | Linda Kleemann; Alexandra Effenberger |
| Abstract: | As consumers’ demand for organic products and especially organic food grows, organic certification for tropical fruit is increasingly promoted in many developing countries. Certified organic pineapple exports only started taking off after 2005 and are rapidly increasing. The organic and conventional fresh pineapple value chains are dominated by certification standards and large multinational companies respectively. The two markets, however, still differ greatly in size. We analyze if this influences the price structure in these markets. Specifically, the paper attempts to single out the existence and direction of causality between the conventional and organic pineapple price using the European pineapple market as an example. We study spatial price transmission, i.e. the difference in prices between the markets for organic and conventional pineapple. The results indicate the dependence of organic market price movements on conventional ones. On the contrary, the conventional market is not affected by this niche market |
| Keywords: | price transmission, private standards, organic agriculture, organic markets |
| JEL: | F14 L11 L15 O13 Q13 Q17 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1626&r=mkt |
| By: | Muhammad Mahboob Ali (Atish Dipankar University of Science and Technology; Bangladesh) |
| Abstract: | E-business has created tremendous opportunity all over the globe. On line banking can act as a complementary factor of e-business. Bangladesh Bank has recently argued to introduce automated clearing house system. This pushed upward transition from the manual banking system to the on line banking system. The study has been undertaken to observe present status of the e-business and as its complementary factor on line banking system in Bangladesh. The article analyzes the data that were collected from Bangladeshi banks up to February 2010 and also used snowball sampling techniques to gather answer from the five hundred respondents’ who have already been using on line banking system on the basis of a questionnaire which was prepared for this study purpose. The study found that dealing officials of the banks are not well conversant about their desk work. Authors’ observed that the country can be benefited through successful utilization of e-business as this will help to enhance productivity, monetary gain of both producer and customer may be feasible and positive impact on raising gross domestic product. E -business especially with the help of on line banking can manage economy of Bangladesh in a better way as customer will be satisfied. |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:aiu:abewps:83&r=mkt |
| By: | Sebastian von Engelhardt (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | In the ICT sector, product-software is an important factor for the quality of the products (e.g. cell phones). In this context, open source software enables firms to avoid quality competition as they can cooperate on quality without an explicit contract. The economics of open source (OS) versus closed source (CS) business models are analyzed in a general two- stage model that combines aspects of non-cooperative R&D with the theory of differentiated oligopolies: In stage one, firms develop software, either as OS or CS, or as a an OS-CS-mix if the license allows. In stage two, firms bundle this with complementary products and compete à la Cournot. The model allows for horizontal product differentiation in stage two. The finding are: 1.) While CS-decisions are always strategic substitutes, OS-decisions can be strategic complements. Furthermore, CS is a strategic substitute to OS and vice versa. 2.) The type of OS-license plays a crucial role: only if the license prohibits a direct OS-CS code mix (like the GPL), then Nash-equilibria with firms producing OS code exist for all parameters. 3.) In the equilibrium of a mixed industry with restricted licenses, OS-firms offer lower quality than their CS-rivals. |
| Keywords: | open source, commercial open source, Cournot, R&D |
| JEL: | D43 L17 O34 |
| Date: | 2010–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2010-034&r=mkt |