nep-mkt New Economics Papers
on Marketing
Issue of 2010‒12‒23
eleven papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Consumer Culture and Purchase Intentions towards Fashion Apparel By Rajagopal
  2. Orchestration of the Marketing Strategy under Competitive Dynamics By Rajagopal
  3. Green Leader or Green Liar ? Differentiation and the role of NGOs By Mireille Chiroleu-Assouline
  4. Hotelling competition with multi-purchasing By Anderson, Simon P.; Foros, Øystein; Kind, Hans Jarle
  5. Automobile engine variants and price discrimination By Øyvind THOMASSEN
  6. Product differentiation on a platform: the informative and persuasive role of advertising By Dries DE SMET; Patrick VAN CAYSEELE
  7. Bounds on willingness-to-pay in a pure-characteristics model of the demand for automobile variants By Øyvind THOMASSEN
  8. Attitudes towards foreign products and welfare with capital mobility By J.M. Callois; C. Gaigné
  9. Coexistence and Conflicts between Shopping Malls and Street Markets in Growing Cities: Analysis of Shoppers’ Behavior By Rajagopal
  10. A conceptual model of virtual product development process By Ale Ebrahim, Nader; Ahmed, Shamsuddin; Taha, Zahari
  11. Coyuntura económica y variación en la valoración financiera de una marca By Pérez Mantecón, María; Barajas, Angel

  1. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: This study examines the effectiveness of different fashion marketing strategies and analyzes of the consumer behavior in a cross-section of demographic settings in reference to fashion apparel retailing. This paper also discusses the marketing competencies of fashion apparel brands and retailers in reference to brand image, promotions, and externalmarket knowledge. The study examines the determinants of consumer behavior and their impact on purchase intentions towards fashion apparel. The results reveal that sociocultural and personality related factors induce the purchase intentions among consumers. One of the contributions that this research extends is the debate about the converging economic, cognitive and brand related factors to induce purchase intentions. Fashion loving consumers typically patronage multi-channel retail outlets, designer brands, and invest time and cost towards an advantageous product search. The results of the study show a positive effect of store and brand preferences on developing purchase intentions for fashion apparel among consumers.
    Keywords: Consumer behavior, purchase intention, socio-cultural values, designer brands, store brands, fashion apparel, brand promotion, personalization, fashion retailing, psychographic drivers
    JEL: M31
    Date: 2010–12
  2. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: Constructing suitable marketing strategy and implementing it effectively is an art and science both like orchestration of a symphony. The discussion in this paper blends this analogy with the science of marketing demonstrating the levels of strategy development in a competitive marketplace. The paper presents the marketing-mix in contemporary context and argues that performance of a marketing firm can be maximized, when a firm develops a creative marketing strategy and achieves marketing strategy implementation effectiveness. The discussion in the paper reveals that marketing managers of different levels simultaneously operate within the firm and perceive the need for strategy development with varied preferences. A consequence of this is development of robust strategies and their effective implementation which, in turn, leads to increased market performance. Thus, it is important for researchers to investigate various strategy integration perspectives and this paper provides guidance by reviewing the existing literature.
    Keywords: Marketing strategy, strategy integration, marketing-mix, customer value,strategy implementation, market competition, risk factors, brand building, customer centric strategy, routes to market
    JEL: M31
    Date: 2010–12
  3. By: Mireille Chiroleu-Assouline (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: This paper addresses how corporate environmentalism can be a means of differentiation and of green-washing. Since consumers can seldom directly observe a firm's environmental quality (a problem not easily solved through eco-labeling), published environmental reports and advertising can mislead them. As a result, the role of the NGO becomes both crucial and ambiguous. On the one hand, by helping to increase consumer awareness, NGOs enlarge the market share of green differentiated firms. On the other hand, the risk that consumers will punish a firm perceived to be supplying inaccurate environmental information may bring about the paradoxical result of discouraging differentiation efforts.
    Keywords: Differentiation, environmental concern, imperfect competition, quality, advertising, NGO.
    Date: 2010–12
  4. By: Anderson, Simon P. (Dept. of Economics, University of Virginia); Foros, Øystein (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration); Kind, Hans Jarle (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)
    Abstract: We analyze a Hotelling model where consumers either buy one out of two goods (single-purchase) or both (multi-purchase). The firms’ pricing strategies turn out to be fundamentally different if some consumers multi-purchase compared to if all single-purchase. Prices are strategic complements under single-purchase, and increase with quality. In a multi-purchase regime, in contrast, prices are strategically independent because firms then act monopolistically by pricing the incremental benefit to marginal consumers. Furthermore, prices can decrease with quality due to overlapping characteristics. Higher preference heterogeneity increases prices and profits in equilibrium with single-purchase, but decreases them with multi-purchase.
    Keywords: Multi-purchase; incremental pricing; content competition
    JEL: G00
    Date: 2010–12–11
  5. By: Øyvind THOMASSEN
    Abstract: Using a structural model of demand for automobile engine variants, this paper finds that there is second-degree price discrimination: markups increase with engine size. Still, average markups are lower than when models have just one engine. The paper develops the first empirical demand framework suitable for markets with variants. There is an unobserved product characteristic and a consumer-specific logit term for classes of products, but both are fixed across variants. Fixed effects control for unobservables. The literature’s assumption of orthogonality between unobserved and observed product characteristics is not needed.
    Keywords: second-degree price discrimination, automobiles, discrete-choice demand models
    JEL: L11 L62 C25
    Date: 2010–04
  6. By: Dries DE SMET; Patrick VAN CAYSEELE
    Abstract: Both sides of a two-sided market are usually modeled as markets without product differentiation. Often however,it will be profit maximizing to differentiate one or two sides in two or more types. In a simple theoretical model,inspired by Yellow Pages,we show that this decision crucially depends on the appreciation of these differentiated types by the other side. We argue that this consists of two parts: first, a preference for informative advertisement by users and second, the effect of persuasive advertisements on users. The relation between both effects drives the monopolist decision to engage in product differentiation. We test this conceptual framework in an empirical investigation of Yellow Pages. We find that Yellow Pages publishers offer large ads even though users don't value them at all. The economic rationale for this is that each advertisement type contributes directly (by the price paid for it) and indirectly (by increased usage) to revenues. Large ads are mainly set for this direct contribution, small ads for this indirect contribution. If a platform can choose the size, it will make the size difference between small and large ads as large as possible, in order to attract as much users as possible, but also to induce self selection among advertisers.
    Keywords: two-sided markets, product differentiation, Yellow Pages, advertising
    JEL: D42 L12 L86
    Date: 2010–01
  7. By: Øyvind THOMASSEN
    Abstract: I estimate a pure-characteristics discrete choice model of the demand for automobile engine and body style variants, using market-level data. Revealed preference bounds and imposed bounds on the willingness to pay for characteristics as a percentage of product price are sufficient to identify nonparametric taste distributions. Substitution patterns as determined by closest substitutes appear very realistic. The model can be estimated on a single cross-section of data.
    Date: 2010–04
  8. By: J.M. Callois (METAFORT - Mutations des activités, des espaces et des formes d'organisation dans les territoires ruraux - CEMAGREF-UR MECF - INRA : UMR1273 - Ecole Nationale du Génie Rural des Eaux et Forêts - ENITA Clermont); C. Gaigné (Structures et Marché Agricoles, Ressources et Territoires - INRA - Agrocampus Ouest)
    Abstract: We develop a model of trade with imperfect competition to study the welfare implications in developing and developed countries of the asymmetry in attitudes towards foreign products. In the developed country, consumers benefit from a better perception of foreign products while the rental rate of capital declines as long as the location of capital remains unchanged. However, when capital is mobile, the developing country hosts more and more capital at the expense of the developed country as perception of varieties produced in the developed country improves and the surplus of consumers in the developed country can decrease.
    Date: 2010
  9. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: Street markets in developing countries constitute an integral part of the local economy as well as exhibit ethnic image of the habitat, which continues to function also in growing cities. The shopping malls have intercepted the traditional marketplace culture and are instrumental in shifting the consumer behavior in urban areas. This article discusses how consumers' decision-making styles shift towards shopping at malls as well as street markets in Mexico City. Based on exploratory data and using a theoretical model of consumer-decision making styles, this study addresses the causes and effects of coexistence of shopping malls and street markets. The results show that there are various economic and marketplace ambience related factors that affect the consumer decisiontowards shopping. The article concludes with specific suggestions for reducing conflicts and increasing cohesiveness towards the shopping behavior between shopping malls and street markets, and advancing strategic retailing strategies to establish the co-existence of contemporary and conventional market systems.
    Keywords: Shopping malls, street markets, shopping behavior, urban marketplace,Mexico, market ambience
    JEL: M31 O18 R12
    Date: 2010–12
  10. By: Ale Ebrahim, Nader; Ahmed, Shamsuddin; Taha, Zahari
    Abstract: In today’s dynamic marketplace, companies are under strong pressure to introduce new products for long-term survival with their competitors. Besides, every company cannot cope up progressively or immediately with the market requirements due to knowledge dynamics being experienced in competitive milieu. Increased competition and reduced product life cycles put force upon companies to develop new products faster. In response to this pressing need there should be some new approach compatible in flexible circumstances. This paper presents a solution based on the Stage-Gate system, which is closely linked with virtual team approach. Virtual teams can provide a platform to advance the knowledge-base in a company and thus to reduce time-to-market. This article introduces conceptual product development architecture under a virtual-team umbrella. The paper describes all the major aspects of new product development (NPD), NPD process and its relationship with virtual team, Stage-Gate system and finally presents a modified Stage-Gate system. It also provides the guidelines for the successful implementation of virtual team in new products development.
    Keywords: Modified Stage-Gate System; Virtual Product Development; Conceptual Model
    JEL: M12 O32 L17 L1 L2 M11 M1 O3 P4 L15
    Date: 2009–04–30
  11. By: Pérez Mantecón, María; Barajas, Angel
    Abstract: It is increasingly common to use concepts such as intangible assets or intellectual capital. It has been frequent buying and selling companies for prices much higher value than book value. In this context, it seems relevant to study how to determine the brand financial value (global brand)-understood as a set of visual elements, intellectual property rights and all organizational elements that have a business- as well as its role increasing the market price of the company. The theoretical development is illustrated by a case study in particular: Adolfo Domínguez. It is noted that the assessments, using the same pattern but changing some parameters, vary in a range between about 43 and more than 61 million Euros. It is therefore concluded that, even in the most objective models appear subjective and economic circumstances that influence the market by providing higher valuations in good times and lower valuations in times of crisis.
    Keywords: Brand value; Hirose; Economic conditions; finance
    JEL: M31 L67 G3
    Date: 2010–11–25

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