nep-mkt New Economics Papers
on Marketing
Issue of 2011‒02‒12
six papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. How Sustainability Ratings Might Deter “Greenwashing”: A Closer Look at Ethical Corporate Communication By Béatrice Parguel; Florence Benoît-Moreau; Fabrice Larceneux
  2. Se așteaptă consumatorii ca organizațiile să fie responsabile din punct de vedere social? By Bradu, Cosmina Paula
  3. Welfare Effects of Pharmaceutical Informative Advertising By Paris Cleanthous
  4. Consumer Search Markets with Costly Second Visits By Maarten C.W. Janssen; Alexei Parakhonyak
  5. Responsabilitatea Socială Corporativă (CSR) - un concept în continuă evoluție By Bradu, Cosmina Paula
  6. Predictors of customer loyalty in automobile insurance: The role of private information in risky driving behavior and claim history By Arvidsson, Sara

  1. By: Béatrice Parguel (IRG - Institut de Recherche en Gestion - Université Paris XII Val de Marne : EA2354 - Université Paris-Est); Florence Benoît-Moreau (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX); Fabrice Larceneux (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX)
    Abstract: Of the many ethical corporate marketing practices, many firms use corporate social responsibility (CSR) communication to enhance their corporate image. Yet consumers, overwhelmed by these more or less well-founded CSR claims often have trouble identifying truly responsible firms. This confusion encourages “greenwashing” and may make CSR initiatives less effective. On the basis of attribution theory, this study investigates the role of independent sustainability ratings on consumers' responses to companies' CSR communication. Experimental results indicate the negative effect of a poor sustainability rating for corporate brand evaluations in the case of CSR communication, because consumers infer less intrinsic motives by the brand. Sustainability ratings thus could act to deter “greenwashing” and encourage virtuous firms to persevere in their CSR practices.
    Keywords: ethical corporate marketing, CSR communication, attribution theory, sustainability ratings
    Date: 2011
  2. By: Bradu, Cosmina Paula
    Abstract: Purpose – This review article aims to develop an integrating overview of the present status of the theory of corporate social responsibility (CSR) and also of individuals’ expectations of corporate social responsibility (CSR). Design/methodology/approach – In order to clarify the core concepts of CSR and consumer`s expectations, a number of 19 articles in leading economic journals between 2000 and 2009 were analyzed. For the analysis I also took in consideration the terms of publication characteristics, research design, variables, concepts, sampling and level of analysis. Findings – Recommendations include a broadened perspective in empirical research to address CSR in its entirety, expand the focus on the consumers expectations, include a broader range of samples and conduct more inductive, exploratory empirical studies. These steps will contribute to a multidimensional view of the corporate social responsibility (CSR) and of the consumers expectations of each dimension of corporate social responsibility (CSR) . Research limitations/implications – The number and specific choice of journals was subject to a compromise between comprehensiveness and the availability of space for a review. Practical implications – The way the scholarly marketing literature treats consumer`s expectations of CSR impacts what our students and other constituencies learn. Originality/value – Given the veritable explosion of CSR research during the recent years, there is a genuine need for the field to take stock of what has been learned so far and what that implies in terms of consumers expectations and where researchers should be headed
    Keywords: Corporate social responsibility; consumer`s expectations; consumer behaviour
    JEL: M14 M31
    Date: 2011–01–28
  3. By: Paris Cleanthous
    Abstract: Pharmaceutical markets are characterized by a high degree of innovation, complexity and uncertainty, especially markets of idiosyncratic symptomatolgy and response to treatment such as the antidepressant market. It may, therefore, be unreasonable to assume that consumers are aware of all antidepressants for sale at the time of purchase, as is the case in traditional models of consumer choice. Such an assumption will bias demand curves towards being more elastic and the evaluation of consumer welfare downwards. This paper, therefore, aims at analyzing and evaluating the effects of promotions by pharmaceutical firms on patient welfare taking into account the interaction of multiple agents (patients, physicians, insurance companies and pharmaceutical companies) in the decision process. I present an empirical discrete-choice model of limited information, where advertising influences the set of drugs from which a purchase choice is made. The estimation technique incorporates both macro- and micro-level data. Estimation results indicate that pharmaceutical firms use advertising media to target high-income households and households with more comprehensive prescription drug insurance schemes through their physicians or directly. Model comparison shows that limited information leads to less elastic demand curves and larger estimates of patient welfare due to pharmaceutical innovation that exacerbate the moral hazard issue that coexists with insurance coverage.
    Keywords: Advertising, Health, Information, Moral Hazard, Pharmaceuticals, Welfare
    Date: 2011–01
  4. By: Maarten C.W. Janssen; Alexei Parakhonyak
    Abstract: This is the first paper on consumer search where the cost of going back to stores already searched is explicitly taken into account. We show that the optimal sequential search rule under costly second visits is very different from the traditional reservation price rule in that it is nonstationary and not independent of previously sampled prices. We explore the implications of costly second visits on market equilibrium in two celebrated search models. In the Wolinsky model some consumers search beyond the first firm and in this class of models costly second visits do make a substantive difference: equilibrium prices under costly second visits can both be higher and lower than their perfect recall analogues. In the oligopoly search model of Stahl where consumers do not search beyond the first firm, there remains a unique symmetric equilibrium that has firms use pricing strategies that are identical to the perfect recall case.
    JEL: D11 D40 D83 L13
    Date: 2011–01
  5. By: Bradu, Cosmina Paula
    Abstract: Purpose – This article aims to develop and to popularize an overview of the present status of the concept of corporate social responsibility (CSR). Design/methodology/approach – In order to clarify and to popularize the core concepts of CSR, articles in leading economic journals were analyzed. Findings – In the paper are promoted different theories and definitions concerning the present status of the corporate social responsibility(CSR). Research limitations/implications – The number and specific choice of journals was subject to a compromise between comprehensiveness and the availability of space for this article. Practical implications – As for many people CSR is fuzzy, with unclear boundaries, to clear things up, I proposed a series of definitions and theories that can form an overview of this concept. Originality/value – The article provides a brief analysis of the most important theories and definitions of CSR.
    Keywords: Corporate social responsibility; consumer`s expectations; consumer behaviour
    JEL: M14 M31
    Date: 2011–02–04
  6. By: Arvidsson, Sara (VTI)
    Abstract: Contract relevant information asymmetries are known to cause inefficiencies in markets. The information asymmetry is largest in the beginning of the customer insurer relationship but reduces over time; the longer a policyholder stays with the insurer the more the insurer learns about the policyholder’s risk. Two important characteristics of the market studied here imply that the information asymmetry may not be reduced for all policyholders. First, insurers do not have access to traffic violations, which are predictors of risk since policyholders with traffic violations are more likely to report a claim. Second, the insurers do not share information, such as previous claims, which means that the policyholder can flee a poor claim record by switching insurer. Hence, there may be a selection of high risk customers who switch insurer more often, such that the information asymmetry in this group is never reduced. To test this, we compare information asymmetries in two groups of policyholders; new customers who stay with the insurer for a period or less (short term), and long-term customers who stay with the insurer for several periods (loyal). The results indicate that departing policyholders are disproportionately high risks that constitute an adverse selection of risks, while loyal policyholders constitute a propitious (favorable) selection of risks.
    Keywords: Asymmetric information; insurance; accidents; adverse selection; propitious selection
    JEL: D82
    Date: 2011–02–03

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