nep-mkt New Economics Papers
on Marketing
Issue of 2011‒04‒09
three papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. First mover advantages in the mobile telecommunications industry: A consumer-centric perspective By JP Eggers; Michal Grajek; Tobias Kretschmer
  2. Does Market Experience Eliminate Market Anomalies? The Case of Exogenous Market Experience By John A. List
  3. Certification of Corporate Social Responsibility Activities in Oligopolistic Markets By Constantine Manasakis; Evangelos Mitrokostas; Emmanuel Petrakis

  1. By: JP Eggers (NYU Stern School of Business); Michal Grajek (ESMT European School of Management and Technology); Tobias Kretschmer (LMU Munich)
    Abstract: This study offers a consumer-centric view of entry order advantages and the role of firm-level capabilities. Specifically, we consider the fact that early adopting consumers will be different from late adopting ones. We suggest that early entering firms will attract higher-profitability customers, and that this will be a key source of first-mover advantages. Additionally, this effect will be stronger for firms with strong technological capabilities as early adopters are generally more technology-oriented than late adopters. Conversely, firms with existing marketing and branding resources in the country will do better at attracting a high volume of less-profitable customers – standard late adopters that are swayed by brand effects. Our empirical results, drawn from data on the global mobile telecommunications industry, support our assertions and help us offer important depth to the discussion about first-mover advantages and the contingent role of firm capabilities.
    Keywords: first-mover advantage, mobile telecommunications, consumer-centric, pre-entry experience, firm capabilities
    JEL: C51 L10 O33
    Date: 2011–03–30
  2. By: John A. List
    Abstract: A vibrant literature has emerged that suggests willingness to pay and willingness to accept measures of value are quite different for inexperienced consumers but that value differences erode with market experience. One potential shortcoming of this literature is that market experience is endogenous. This study presents a framed field experiment that exogenously induces market experience. Empirical findings support the premise that market experience, alone, can eliminate an important market anomaly.
    JEL: C93 D01 Q5
    Date: 2011–03
  3. By: Constantine Manasakis (Department of Economics, University of Crete, Greece); Evangelos Mitrokostas (Department of Economics, University of Crete); Emmanuel Petrakis (Department of Economics, University of Crete, Greece)
    Abstract: We investigate the impact of alternative certifying institutions on firms' incentives to engage in costly Corporate Social Responsibility (CSR) activities as well as their relative market and societal implications. We find that the CSR certification standard is the lowest under a for-profit private certifier and the highest under a Non Governmental Organization (NGO), with the standard of a welfare maximizing public certifier lying in between. Yet, regarding industry output, this ranking is reversed. Certification of CSR activities is welfare enhancing for consumers and firms and thus should be encouraged. Finally, depending on whether certification takes place before or after firms' CSR activities, a public certifier and a NGO lead to different market and societal outcomes.
    Keywords: Corporate Social Responsibility, Oligopoly, Vertical Differentiation, Certification
    JEL: L13 L5 M14
    Date: 2011–03–29

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