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on Marketing |
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Issue of 2011‒02‒05
four papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Chintagunta, Pradeep K. (Chicago Booth); Nair, Harikesh S. (Stanford GSB) |
| Abstract: | Marketing researchers have used models of consumer demand to forecast future sales; to describe and test theories of consumer behavior; and to measure the response to marketing interventions. The basic framework typically starts from microfoundations of expected utility theory to obtain a statistical system that describes consumers' choices over available options, and to thus characterize product demand. The basic model has been augmented significantly to account for quantity choice decisions; to accommodate purchases of several products on a single purchase occasion (multiple discreteness and multi-category purchases); and to allow for asymmetric switching between brands across different price tiers. These extensions have enabled researchers to bring the analysis to bear on several related marketing phenomena of interest. |
| Abstract: | This paper has three main objectives. The first objective is to articulate the main goals of demand analysis - forecasting, measurement and testing - and to highlight the desiderata associated with these goals. Our second objective is describe the main building blocks of individual-level demand models. We discuss approaches built on direct and indirect utility specifications of demand systems, and review extensions that have appeared in the marketing literature. The third objective is to explore interesting emerging directions in demand analysis including considering demand-side dynamics; combining purchase data with primary information; and using semiparametric and nonparametric approaches. We hope researchers new to this literature will take away a broader perspective on these models and see potential for new directions in future research. |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:2072&r=mkt |
| By: | Nagler, Matthew G.; Kronenberg, Fredi; Kennelly, Edward J.; Jiang, Bei; Ma, Chunhui |
| Abstract: | Using the dietary supplement black cohosh to demonstrate our method, we employ data on a product characteristic unobservable to consumers to decompose the contribution to consumers’ valuations of observable characteristics into surrogate indicator and direct components. Because consumers are not all “expert appraisers” of the unobservable characteristic, the measured relationship of indicators to the unobservable quality is generally not the one consumers perceive. Consequently, biases that depend upon the nature of consumers’ ineptitude are introduced into the component estimation. The researcher’s inference problem is solved by recognizing that consumers with greater appraisal expertise sort disproportionately to higher quality products. This enables feasible measurement of inept consumers’ relative valuations and conjectures through separate hedonic estimation on high- and low-quality product subsamples. We find that, relative to experts, inept consumers likely underestimate the value of most observable characteristics in indicating black cohosh product authenticity; however they overweight online product ratings. |
| Keywords: | hedonic analysis; surrogate indicators; asymmetric information; pricing strategy; product strategy |
| JEL: | D12 D83 L15 |
| Date: | 2010–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28409&r=mkt |
| By: | Ferro, Esteban |
| Abstract: | Besides superior productivity, what other firm characteristics are associated with export success? This empirical study identifies the effects of signaling tools (foreign technical license, International Standards Organization certification, and review of financial statements) and Internet tools (email and website) on export frequency and intensity of firms in developing countries. Using data from the World Bank’s Enterprise Survey, the author finds that productivity, size, foreign ownership, International Standards Organization certification, and the use of Internet tools have positive effects on the probability of exporting and on the intensive margin of trade. International Standards Organization certified firms are 22 percent more likely to be exporters, whereas firms that use their own website to communicate with clients and suppliers increase the likelihood they export by 11 percent. Among exporting firms, those that are International Standards Organization certified sell 41 percent more abroad than firms that are not certified. Firms that use email sell 31 percent more in foreign markets than exporting firms that do not. |
| Keywords: | Economic Theory&Research,E-Business,Microfinance,Labor Policies,Markets and Market Access |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5547&r=mkt |
| By: | Nuno Boavida (IET, Universidade Nova de Lisboa, Faculdade de Ciências e Tecnologia); Susana Martins Moretto (IET, Universidade Nova de Lisboa, Faculdade de Ciências e Tecnologia) |
| Abstract: | This paper analyses the application of the Innovation Scoring model and its results to the railway business branch of a foreign multinational. Results confirm some enrolment in non-core Research & Development connected to the commercial activity of selling trains. Two main determinants were found to support this enrolment: the impact of a new Portuguese law imposing R&D investment for public contracts; and a certain degree of openness in the multinational’s innovation strategy based on predictable growth for the Portuguese market. The study also confirms the usefulness of the Innovation Scoring model, leaving some suggestions for improvement such as tailoring for multi-decision centres, implementing it through a third party, reducing the number of questions and introduction of a product evaluation methodology. |
| Keywords: | Innovation Assessment; Railway; Policy; Scoring model; Multinational, Portugal |
| JEL: | O32 R42 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ieu:wpaper:25&r=mkt |