nep-mkt New Economics Papers
on Marketing
Issue of 2011‒07‒13
eight papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Corporate Brand Repositioning with CSR as the Differentiating Factor: A Study on Consumer Perceptions By Vilppo, Tiina; Lindberg-Repo, Kirsti
  2. 'Just one of us': Consumers playing oligopoly in mixed markets By Marco, Marini; Alberto , Zevi
  4. Information display from board wargame for marketing strategy identification By Stéphane Goria
  5. Price Competition on Network By Carlos Lever Guzmán
  6. Price setting in a leading Swiss online supermarket By Martin Berka; Michael B. Devereux; Thomas Rudolph
  7. Competition and Commercial Media Bias By A. Blasco; F. Sobbrio
  8. CSR reporting: The mastery of the internal dynamics By L. BOUTEN

  1. By: Vilppo, Tiina (Department of Marketing); Lindberg-Repo, Kirsti (Department of Marketing)
    Abstract: Purpose – This research paper studies how the strategy of repositioning enables marketers to communicate CSR as their brand’s differentiating factor. It aims at understanding how consumer perceptions can be managed to generate brand value through corporate brand repositioning when CSR is the differentiating factor. The purpose of this paper is to answer the following research question: How can consumer perceptions be managed to generate brand value through corporate brand repositioning when CSR is the differentiating factor? The two research objectives were: 1. to build a model, which describes the different components of consumer perceptions involved in generation of brand value through repositioning when CSR is the differentiating factor, 2. to identify the most critical components in the context of the case company, IKEA for generation of brand value during the process of corporate brand repositioning. Design/methodology/approach – This paper is based on the literature review covering the logic of brand value generation, repositioning strategy and consumer perceptions connected to CSR activities. A key concept of the positioning theory, the brand’s differentiating factor, was explored. Previous studies have concluded that desirability of the differentiating factor largely determines the level of brand value-creation for the target customers. The criterion of desirability is based on three dimensions: relevance, distinctiveness and believability. A model was built in terms of these desirability dimensions. This paper takes a case study approach where the predefined theoretical framework is tested using IKEA as the case company. When developing insights on the multifaceted nature of brand perceptions, personal interviews and individual probing are vital. They enable the interviewees to reflect on their feelings and perceptions with their own words. This is why the data collection was based on means-end type of questioning. Qualitative interviews were conducted with 12 consumers. Findings – The paper highlights five critical components that may determine whether IKEA will fail in its repositioning efforts. The majority of the critical components involved believability perceptions. Hence, according to the findings, establishing credibility and trustworthiness for the brand in the context of CSR seems primary. The most critical components identified of the believability aspect were: providing proof of responsible codes of conduct via conducting specific and concrete CSR actions, connecting the company’s products and the social cause, and building a linkage between the initial and new positioning while also weakening the old positioning. Originality/value – Marketers’ obligation is to prepare the company for future demands. Companies all over the globe have recognized the durable trend of responsibility and sustainability. Consumer´s worry about the environmental and social impact of modern lifestyles is growing. This is why Corporate Social Responsibility (CSR) provides brands an important source of differentiation and strength in the future. The strategy of repositioning enables marketers to communicate CSR as their brand’s differentiating factor. This study aimed at understanding how consumer perceptions can be managed to generate brand value through corporate brand repositioning when CSR is the differentiating factor.
    Keywords: corporate social responsibility; CSR; corporate brand; repositioning
    Date: 2011–06–01
  2. By: Marco, Marini; Alberto , Zevi
    Abstract: Consumer cooperatives represent a highly successful example of democratic form of enterprises operating in developed countries. They are usually medium to large-scale companies competing with the profit-maximizing firms in the retail sector. This paper describes this situation as a mixed oligopoly in which consumer cooperatives maximize the utility of consumer-members and, in return, refund them with a share of the profits corresponding to the ratio of their individual spending to the cooperative's total sales. We show that when consumers possess quasi-linear preferences over a bundle of symmetrically differentiated goods, and companies operate using a linear technology, the presence of consumer cooperatives positively affects total industry output, as well as welfare. The effect of cooperatives on welfare proves to be even more significant when goods are either complements or highly differentiated, and when competition is à la Cournot rather than à la Bertrand.
    Keywords: Consumer Cooperatives; Profit-maximizing Firms; Mixed Oligopoly
    JEL: D21 I30 P13 L13 D01
    Date: 2010–08–01
  3. By: Audrey Sin Lye Yee (Faculty of Management and Information Technology, UCSI University); Assoc. Prof. Dr. Keoy Kay Hooi (Centre of Excellence for Research, Value Innovation and Entrepreneurship (CERVIE), Faculty of Management and Information Technology, UCSI University)
    Abstract: Malaysia is fast becoming one of the most important markets in the world. The 2005 World Competitiveness Report has placed Malaysia as the 10th most competitive nation among 30 countries with a population of more than 20 million (Yakcop, 2006). Day in day out people makes transaction to purchase goods or services for example purchasing of goods in the shopping centre or online purchasing. These people are often referred as consumer; the one who consume goods or services for personal usage. Consumer plays an important role in any business where this group of people creates demand for goods or services which leads to business growth and profitability; without demand there would be no business. In the present study the purpose is to evaluate the extent of young-adult consumer’s decision-making behaviour between the two chosen regions that varies which impact on consumers’ buying behaviour. The required information was collected from 100 respondents who were randomly selected from two regions in Malaysia. Questionnaire was utilised and the data gathered were analysed using correlation, ANOVA and regression coefficient r. A number of implications arise from these findings. First, quality is perceived as the most influential product factor that these young-adult consumers are taking into account when making purchases. This criterion is followed by price which means, these young-adult consumers are willing to pay the price if the quality if superior. However, this does not mean that companies should not pay attention to where their product is being located and this also does not mean that companies need to downplay their branding
    Keywords: Capacity, Simulation, Downtime, Supply chain, Palm oil mill
    JEL: M00
    Date: 2011–06
  4. By: Stéphane Goria (LORIA - SITE - INRIA - CNRS : UMR7503 - Université Henri Poincaré - Nancy I - Université Nancy II - Institut National Polytechnique de Lorraine (INPL))
    Abstract: Marketing warfare is an alternative solution for a company to defend itself or to win market parts. This approach presents consumer spirit as a battleground where companies make military maneuvers to confront each other. But a problem subsists, how make a link between market and battle or war? May be a solution exists: business wargames. But now, they are too complex or only role playing oriented without any solution to map battles. However, before being business wargames, wargames were developed to propose visual solutions to recreate a specific war situation. Now, wargames for civilians exist, with a particular kind: board wargames, which we found very interesting for information display. In this paper, we develop a methodology to apply a board wargame tool for a market situation.
    Keywords: intelligence économique, veille stratégique, veille concurrentielle, veille marché, veille créative, visualisation d'information, innovation, jeu de guerre, wargame, war game, jeu sérieux // creative intelligence, strategic intelligence, competitive intelligence, economic intelligence, market intelligence, information visualization, wargaming, wargame, war game, marketing warfare, innovation, watch, serious game, serious gaming, creative competitive intelligence
    Date: 2011–04–05
  5. By: Carlos Lever Guzmán
    Abstract: We present a model of imperfect price competition where not all firms can sell to all consumers. A network structure models the local interaction of firms and consumers. We find that aggregate surplus is maximized with a fully connected network, which corresponds to perfect competition, and decreases monotonically as the network becomes less connected until firms become local monopolists. When we study which networks are likely to form in equilibrium, we find that stable networks are not fully connected but are connected enough to rule out local monopolists. Our results extend to oligopolistic competition when consumers can either buy from a single firm or from all firms.
    Keywords: Network markets, price competition, oligopoly competition, Bertrand competition.
    JEL: D43 D85 L11 L13
    Date: 2011–07
  6. By: Martin Berka; Michael B. Devereux; Thomas Rudolph
    Abstract: We study a newly released data set of scanner prices for food products in a large Swiss online supermarket. We find that average prices change about every two months, but when we exclude temporary sales, prices are extremely sticky, changing on average once every three years. Non-sale price behavior is broadly consistent with menu cost models of sticky prices. When we focus specifically on the behavior of sale prices, however, we find that the characteristics of price adjustment seems to be substantially at odds with standard theory.
    Date: 2011–07
  7. By: A. Blasco; F. Sobbrio
    Abstract: This paper reviews the empirical evidence on commercial media bias (i.e., advertisers inuence over news reports) and then introduces a simple model to summarize the main elements of the theoretical literature. The analysis provides three main policy insights for media regulators: i) Media regulators should target their monitoring efforts towards news contents upon which advertisers are likely to share similar preferences; ii) In advertising industries characterized by highly correlated products, an increase in the degree of competition may translate into a lower accuracy of news reports; iii) A sufficiently high degree of competition in the market for news may drive out commercial media bias.
    JEL: L13 L15 L82 D82
    Date: 2011–06
  8. By: L. BOUTEN
    Abstract: Through in-depth semi-structured interviews with senior managers, this study tries to reveal the reasons behind both the presence and the absence of corporate social responsibility (CSR) disclosures in the annual reports of Belgian listed companies. Using a neo-institutional theory lens, the narratives indicate that although companies might feel some institutional pressures to report CSR information, ‘institutional isolating mechanisms’ might hinder companies to include this type of information in their annual reports. A conservative attitude towards reporting in general appears to constitute an institutional isolating mechanism in the context of CSR reporting.
    Date: 2011–05

This nep-mkt issue is ©2011 by Joao Carlos Correia Leitao. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.