nep-mkt New Economics Papers
on Marketing
Issue of 2011‒05‒30
six papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. The 2009 survey of consumer payment choice By Kevin Foster; Erik Meijer; Scott Schuh; Michael A. Zabek
  2. Limited and varying consumer attention: evidence from shocks to the salience of bank overdraft fees By Victor Stango; Jonathan Zinman
  3. Consumer Preferences for Eco, Health and Fair Trade Labels. An Application to Seafood Product in France By Dorothée Brécard; Sterenn Lucas; Nathalie Pichot; Frédéric Salladaré
  4. Virtual customer service agents: Using social presence and personalization to shape online service encounters By Verhagen, T.; Nes, J.G. van; Feldberg, J.F.M.; Dolen, W.M. van
  5. Credit supply to personal bankruptcy filers: evidence from credit card mailings By Song Han; Benjamin J. Keys; Geng Li
  6. Fatigue in payment diaries - empirical evidence from Germany By Schmidt, Tobias

  1. By: Kevin Foster; Erik Meijer; Scott Schuh; Michael A. Zabek
    Abstract: This paper presents results of the 2009 Survey of Consumer Payment Choice (SCPC), along with revised 2008 SCPC data. In 2009, the average U.S. consumer held 5.0 of the nine payment instruments available, including cash, and used 3.8 of them during a typical month. Between the 2008 and 2009 surveys, a period that includes the trough of the latest recession, consumers significantly increased their use of cash and close substitutes for cash, such as money orders and prepaid cards. At the same time, consumers reduced their use of credit cards and (to a lesser extent) debit cards, as well as payments made using a bank account number. Weaker economic conditions, new government regulations, and bank pricing of payment card services all likely contributed to the shift back toward cash. However, it is difficult to determine how much each of these factors contributed, and whether the shift is transitory or permanent, without more data and research on consumer payment choice. In 2009, one in three consumers had a prepaid card and nearly as many had a nonbank payment account online, while 3 percent made a mobile payment. By focusing on payments by consumers only, the SCPC complements the recent 2010 Federal Reserve Payment Study, which describes the entire noncash payments economy.
    Keywords: Payment systems ; Consumer surveys ; Credit cards ; Cash transactions
    Date: 2011
  2. By: Victor Stango; Jonathan Zinman
    Abstract: The authors explore dynamics of limited attention in the $35 billion market for checking overdrafts, using survey content as shocks to the salience of overdraft fees. Conditional on selection into surveys, individuals who face overdraft-related questions are less likely to incur a fee in the survey month. Taking multiple overdraft surveys builds a "stock" of attention that reduces overdrafts for up to two years. The effects are significant among consumers with lower education and financial literacy. Consumers avoid overdrafts not by increasing balances but by making fewer debit transactions and cancelling automatic recurring withdrawals. The results raise new questions about consumer financial protection policy.
    Keywords: Overdrafts ; Consumer behavior
    Date: 2011
  3. By: Dorothée Brécard (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Sterenn Lucas (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Nathalie Pichot (LAUREPS - CRPCC - Laboratoire de Psychologie Sociale. UHB - MEN : EA1285 - Université Rennes 2 - Haute Bretagne); Frédéric Salladaré (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272, CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes I - Université de Caen)
    Abstract: How are consumer attitudes towards eco-labeled products affected by a profusion of labels? This article provides both theoretical and empirical insight into this issue. Assuming that consumers perceive a label both as a sign of quality and of a particular characteristic of a product, we deduce theoretical determinants for preferences for three types of label: a health label, an eco-label and a fair trade label. Using a French survey on seafood products, the estimation of a rank-ordered multinomial logit with random intercepts shows a certain proximity between the profiles of pro-eco-label and pro-fair trade label consumers, whereas pro-health label individuals have a more distinct profile: The two former are more likely to be young men mainly concerned with fishing conditions, whereas the latter are older married women with children who pay attention to the product form. We relate preferences for labels to degree of altruism, environmental consciousness and other socio-economic features.
    Keywords: Environmental preferences ; contingent choice ; eco-label ; seafood.
    Date: 2011
  4. By: Verhagen, T.; Nes, J.G. van; Feldberg, J.F.M.; Dolen, W.M. van
    Date: 2011
  5. By: Song Han; Benjamin J. Keys; Geng Li
    Abstract: Are consumers who have filed for personal bankruptcy before excluded from the unsecured credit market? Using a unique data set of credit card mailings, we directly explore the supply of unsecured credit to consumers with the most conspicuous default risk--those with a bankruptcy history. On average, over one-fifth of personal bankruptcy filers receive at least one offer in a given month, with the likelihood being even higher for those who filed for bankruptcy within the previous two years. However, offers to bankruptcy filers carry substantially less favorable terms than those to comparable consumers without a bankruptcy history, with higher interest rates, lower credit limits, a greater likelihood of having an annual fee, and a smaller likelihood of having rewards or promotions. In addition, our analysis of credit terms typically disclosed only in the fine print suggests that offers to filers tend to include more "hidden" costs.
    Date: 2011
  6. By: Schmidt, Tobias
    Abstract: In this paper we analyse whether the recording behaviour of consumers keeping a payment diary changes over the diary period. Using data from a large study on the payment behaviour of German consumers we find that individuals tend to report a higher number of transactions on the first day of the diary period than on subsequent days. Contrary to existing literature we also find that the number of small cash payments recorded does not decrease during the one-week diary period. Our findings indicate that short diaries may be enough to reflect adequately the payment behaviour of all consumers. However, the precision of the estimates increases with longer diaries, at small additional costs. Longer diaries are especially helpful when it comes to analysing subgroups of payment types or rare events. --
    Keywords: payment behaviour,survey design,diary studies
    JEL: C81 D12 E41
    Date: 2011

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