nep-mkt New Economics Papers
on Marketing
Issue of 2011‒08‒15
sixteen papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Sensory Evaluation and Consumersâ Willingness to Pay for Quality Protein Maize (QPM) using Experimental Auctions in Rural Tanzania By Kiria, Christine G.; Vermeulen, Hester; de Groote, Hugo
  2. Consumer attitudes towards sustainability attributes on food labels in the UK and Japan By Saunders, Caroline M.; Guenther, Meike; Tait, Peter; Kaye-Blake, William; Saunders, John; Miller, Sini; Abell, Walt
  3. Demand for improved food safety and quality: a cross-regional comparison By Doherty, Edel; Campbell, Danny
  4. Measuring Market Potential for Fresh Organic Fruit and Vegetable in Ghana By Owusu, Victor; Owusu, Michael Anifori
  5. Modern food retailers and traditional markets in developing countries: Comparing quality, prices, and competition strategies in Thailand By Schipmann, Christin; Qaim, Matin
  6. Structural equation modeling of eBankQual scale: a study of E-Banking in India By Kumbhar, Vijay
  7. Do Sales Matter? Evidence from UK Food Retailing By Lloyd, Tim A.; Morgan, C. Wyn; McCorriston, Steve; Zgovu, Evious
  8. Consumer, Manufacturer and Retailer Responses to Health Price Policies: the example of EU Sugar Price Reform on the Soft Drink Market By Bonnet, Celine; Requillart, Vincent
  9. Second-degree Price Discrimination and Inter-group Effects in Airline Routes between European Cities By Marco Alderighi; Alessandra Cento; Peter Nijkamp; Piet Rietveld
  10. Banana Value Chains in Central Africa: Constraints and Opportunities By Ouma, Emily Awuor; Jagwe, John
  11. Study of Rice Marketing System in Iran By Feizabadi, Yaser
  12. How Local and Seasonal is the Consumption of Soft Fruit in Scotland? By Revoredo-Giha, Cesar; Leat, Philip M.K.; Kupiec-Teahan, Beata; Lamprinopoulou, Chrysa
  13. Factors affecting on customers’ satisfaction an empirical investigation of ATM service By Kumbhar, Vijay
  15. Importance of E-services for Cultural Tourism By Eveline van Leeuwen; Peter Nijkamp
  16. Marketing, Co-operatives and Price Heterogeneity: Evidence from the CIS Dairy Sector By Sauer, Johannes; Gorton, Matthew; White, John

  1. By: Kiria, Christine G.; Vermeulen, Hester; de Groote, Hugo
    Abstract: The purpose of this study was to evaluate the sensory characteristics and consumer acceptability of quality protein maize (QPM) in rural Tanzania. Due to the malnutrition problem facing consumers in developing countries, QPM which has almost double the amount of tryptophan and lysine, has been identified as a possible solution to this problem. To know whether consumers will accept QPM, it is vital that its sensory attributes and consumer acceptance tests are carried out. Sensory characteristics were determined using home use testing and central location methods by use of stiff porridge. Three districts were visited and 120 consumers participated in home use testing, whereas 30 respondents participated in the central location testing. At the central location, triangle test was also undertaken to find out if a difference exists between QPM and conventional maize. Additionally, acceptability of QPM was tested using BDM method. Consumer characteristics of QPM were highly appreciated for stiff porridge, a major maize product in East Africa. This was observed both in home use and sensory location testing. Likewise, consumers were willing to pay more for QPM than for conventional maize in all evaluation criteria used. Triangle test showed a significant difference between QPM and conventional maize. Sensory evaluation however needs to be repeated with other QPM varieties to ensure that it is not only a specific QPM variety that has favourable consumer characteristics
    Keywords: QPM, consumer acceptability, sensory evaluation, malnutrition, Tanzania, Crop Production/Industries, Demand and Price Analysis,
    Date: 2010–09
  2. By: Saunders, Caroline M.; Guenther, Meike; Tait, Peter; Kaye-Blake, William; Saunders, John; Miller, Sini; Abell, Walt
    Abstract: With current concerns about climate change and the general status of the environment, there is an increasing expectation that products have sustainability credentials, and that these can be verified. Labelling is a common method of communicating certain product attributes to consumers that may influence their choices. There are different types of labels with several functions. The aim of this study was to investigate consumersâ, attitudes, knowledge and preferences towards certain sustainability claims on food products across countries; particularly attitudes towards the display of the reduction of carbon emissions were examined in this research. A web-based consumer survey undertaken in the United Kingdom and Japan showed similarities between consumers in the UK and Japan regarding desired label claims of environmental product information. Differences across these countries were observed in terms of the knowledge about certain environmental and social issues such as carbon footprint and sustainability. This information on consumersâ attitudes will assist industries and firms to identify market opportunities, in particular assessing the methods by which carbon footprinting measures can be incorporated alongside information on other sustainability criteria in product ma
    Date: 2011–04
  3. By: Doherty, Edel; Campbell, Danny
    Abstract: This paper explores the demand for improved safety and quality for meat products among consumers in two regions using a discrete choice experiment methodology. The study takes account of preferences from consumers across Great Britain and the Republic of Ireland. The features explored in the choice experiment include food safety, traceability, animal health and welfare, region of origin and price. The results suggest a large difference between willingness to pay and implicit ranking of attributes across regions. Meat products that come from âIrelandâ are most highly demanded among the features for Irish consumers, whereas consumers based in Great Britain value enhanced testing and animal health and welfare standards highest. Furthermore, a high correlation exists, in both regions, between respondents perception of the risk associated with consuming the meat products and the price premium they are willing to pay for the enhanced features
    Keywords: Food Consumption/Nutrition/Food Safety,
    Date: 2011–04
  4. By: Owusu, Victor; Owusu, Michael Anifori
    Abstract: This paper examines the market potential for fresh organic lettuce and water melon with a recently collected data on consumers from Kumasi metropolis of Ghana. Using a doublebounded dichotomous choice contingent valuation technique, consumerâs willingness to pay is estimated with a Tobit model to address the zero willingness to pay responses in the sample data. As much as 71% of the consumers are willing to pay over 50% price premiums for organic vegetables and over 82% are willing to pay 1%â50% price premiums for organic fruits. The empirical results indicate that human capital, product attributes and consumer perception influence consumersâ willing to pay for organic food products. The estimated market potential for organic fruit is GH¢32,117,113 (US$ 26,453,433) per annum and that of organic vegetable is GH¢1,991,224 (US$1,640,083) per annum suggesting a huge market potential for organic fruits in Ghana.
    Keywords: Willingness to Pay, Price Premium, Organic Products, Consumer Perception, Market Potential, Africa, Crop Production/Industries,
    Date: 2010–09
  5. By: Schipmann, Christin; Qaim, Matin
    Abstract: Supermarkets and hypermarkets are expanding rapidly in many developing countries. While consequences for farmers and consumers were analyzed recently, little is known about the implications for traditional retail formats such as wet markets. Using data from a market survey in Thailand and hedonic regression models, we analyze quality and prices for fresh vegetables from different retail outlets. Compared to wet markets, modern retailers sell higher quality at higher prices, indicating that they are primarily targeting better-off consumers. Hence, they are not directly competing for the same market segments. Yet there are signs that modern and traditional markets will gradually converge.
    Keywords: supermarkets, modern retailers, traditional wet markets, product quality, vegetables, Thailand, Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, C21, L15, Q13,
    Date: 2011–04
  6. By: Kumbhar, Vijay
    Abstract: This study assesses the relationship between perceived quality, brand perception and perceived value with satisfaction. For the data analysis structural equation modeling (SEM) method and path analysis method were used. A result indicates that, eBankQual model is fit to assess relationship between service quality, brand perception and perceived value with overall customers’ satisfaction in e-banking service. Result of regression SEM indicates that, all 14 variables found significant and good predictors of overall satisfaction in e-banking services. However, result of SEM analysis indicates that, data supports to eBankQual model and dimensions Compensation, Convenience, Contact Facilities, Easy to Use, Responsiveness, Cost Effectiveness and System Availability including brand perception and perceived value were found more significant factors in the eBankQual model.
    Keywords: Structural Equation Modeling; Service quality; Brand perception; Perceived value; Satisfaction
    JEL: G2
    Date: 2011–05–04
  7. By: Lloyd, Tim A.; Morgan, C. Wyn; McCorriston, Steve; Zgovu, Evious
    Abstract: This paper assesses the role of sales as a feature of price dynamics using scanner data. The study analyses a unique, high frequency panel of supermarket prices consisting of over 230,000 weekly price observations on around 500 products in 15 categories of food stocked by the UKâs seven largest retail chains. In all, 1,700 weekly time series are available at the barcode-specific level including branded and own-label products. The data allows the frequency, magnitude and duration of sales to be analysed in greater detail than has hitherto been possible with UK data. The main results are: (i) sales are a key feature of aggregate price variation with around 40 per cent of price variation being accounted for by sales once price differences for each UPC level across the major retailers are accounted for; (ii) much of the price variation that is observed in the UK food retailing sector is accounted for by price differences between retailers; (iii) only a small proportion of price variation that is observed in UK food retailing is common across the major retailers suggesting that cost shocks originating at the manufacturing level is not one of the main sources of price variation in the UK; (iv) own-label products also exhibit considerable sales behaviour though this is less important than sales for branded goods; and (v) there is some evidence of coordination in the timing of sales across retailers insofar as the probability of a sale at the UPC level at a given retailer increases if the product is also on sale at another retailer.
    Keywords: Sales, price variation, retail, Consumer/Household Economics, Demand and Price Analysis, L16, L66, Q13.,
    Date: 2011–04
  8. By: Bonnet, Celine; Requillart, Vincent
    Abstract: Healthier food diet is likely to prevent numerous non communicable diseases. Then there is a growing interest in evaluating the impact of food price taxation on food consumption. However, strategic reactions of both manufacturers and retailers are missing in empirical analyses. Rather, passive pricing is assumed. Ignoring strategic pricing might lead to under-estimate or over-estimate the impact of food taxation. Based on the example of the soft drink industry, we analyse the bias which is introduced when assuming passive pricing. Using structural econometric model, we first estimate models of vertical relationships between the beverage industry and the retail industry. After selecting the âbestâ model of vertical relationships, we then simulate different scenrios of input cost changes or final products taxation. Our results indicate that assuming passive pricing by firms leads to under-estimate the impact on food consumption. In our example, the under-estimation amounts to 15% for regular products and 50% for diet ones when contracts between manufacturers and retailers are not taken into account. We thus conclude that for empirical analysis of food price policies for better health, considering strategic pricing is a key issue.
    Keywords: vertical contracts, two part tariffs, competition, manufacturers, private labels, retailers, differentiated products, soft drinks, non nested tests, sugar CMO, passthrough, Food Consumption/Nutrition/Food Safety, Health Economics and Policy,
    Date: 2011–04
  9. By: Marco Alderighi (Universita della Valle d'Aosta, Aosta, Italy; Universita Bocconi, Italy); Alessandra Cento (KLM Royal Dutch Airlines, Milano, Italy); Peter Nijkamp (VU University Amsterdam); Piet Rietveld (VU University Amsterdam)
    Abstract: This paper presents a model of second-degree price discrimination and inter-group effects to describe the full-service pricing behaviour in the passenger aviation market. Consumer heterogeneity is assumed on both a horizontal and a vertical dimension, while various distinct market structures, some of which include low-cost carriers (LCCs), are considered. In the theoretical model framework, we derive that the rivalry between full-service carriers (FSCs) reduces fare differences between the business and leisure segments. Furthermore, the presence of LCCs increases fare gaps between leisure and business travellers, and it also induces FSCs to decrease fares in the leisure segment and eventually to increase them in the business one. This last outcome emerges from a change in passenger arrangements caused by inter-group effects. In our empirical analysis, we use data on published airfares of Lufthansa, British Airways, KLM and Alitalia for the main city-pairs from Italy to Germany, the UK and the Netherlands. Our results show that the empirical results provide support for our theoretical propositions.
    JEL: L1 L93 D4
    Date: 2011–08–09
  10. By: Ouma, Emily Awuor; Jagwe, John
    Abstract: Smallholder farmers in developing countries need to improve their position in food value chains in order to improve their margins and as a strategy for coping with agricultural food price volatility through innovations within the chains. Value chain mappings and gross margin analysis were employed to assess constraints and opportunities for existing value chains for bananas in Central Africa using market survey data. The results showed weak linkages within the banana value chains with poor integration of value chain actors and minimal involvement with regional markets and high-value domestic chains such as supermarkets. Value addition in terms of agroprocessing was carried out at small scale levels using rudimentary techniques limiting the final product to low value markets. Transaction costs comprising transport, handling and storage comprised a high proportion of cost items in the value chain. Generally, the findings suggest that efforts aimed at strengthening linkages within the value chains, collective marketing, penetration into high-value chains and improved processing techniques may provide a potential avenue for enhancing banana value chains in Central Africa.
    Keywords: banana value chains, smallholder farmers, Central Africa, collective action, Crop Production/Industries,
    Date: 2010–09
  11. By: Feizabadi, Yaser
    Abstract: Rice comes second after wheat in Iran`s food consumption economy. Rising population and recent growth in GDP has made Iran one of the greatest rice importer countries all over the world. That is why rice marketing has always been a controversial issue in Iran`s agricultural economics. To study rice marketing system in Iran, this paper aims to calculate rice marketing margin, market efficiency and marketing cost coefficient in seaside Mazandaran province( where 70 percent of domestic rice production is obtained )Over the period 2000-2010. Results show that firstly HYV`s wholesale marketing margin is less than local varieties in 2000 while this trend is reversed in 2010. Secondly, retail marketing margin, total marketing margin, market efficiency and cost marketing coefficient for local varieties are all greater than HYV. Consequently, agricultural cooperative`s encouragement would lead to decrease in rice marketing margin and role of traders and raises rice farmers earnings
    Keywords: Mazandaran Province, Marketing Margin, Rice, Marketing, Q13,
    Date: 2011–04
  12. By: Revoredo-Giha, Cesar; Leat, Philip M.K.; Kupiec-Teahan, Beata; Lamprinopoulou, Chrysa
    Abstract: The main implication of the food miles indicator is that in order to protect the environment consumers should purchase food locally and seasonal. However, something that it is missing in all discussions is the evidence about how bad or good - in terms of locality and seasonality- is the actual consumption of food. This is probably due to the fact that food consumption statistics are available as aggregated annual data. In this paper we analyse the purchases of food, in particular the purchases of soft fruits in Scotland, which not only have marked production seasonality but also are imported from the rest of the UK and from abroad. For the analysis we use the Kantar Worldpanel dataset for the period 2006 until 2009. The results indicate that Scottish soft fruit covers a relatively small segment of the market and therefore eat locally would imply reduce significantly the consumption of soft fruit, even during the Scottish produce season. As regards the consumption seasonality, the purchases of soft fruit, particularly strawberry, seem to be seasonal despite the possibility of getting outof- season imported soft fruit.
    Keywords: Scotland agriculture, soft fruits, agricultural marketing, Food Consumption/Nutrition/Food Safety, Q13,
    Date: 2011–04
  13. By: Kumbhar, Vijay
    Abstract: The present empirical study focuses on identifying key factors that have influences customers satisfaction in ATM service provided by public and private sector banks. For the purpose of the study primary data were collected using schedule and collected data from March to November 2010. Results of factor analysis, correlation and regression analysis show that a cost effectiveness, easy to use and security and responsiveness in ATM service were most important factors in customer satisfaction.
    Keywords: E-service Quality; ATM; Customer Satisfaction; Cost Effectiveness
    JEL: G21
    Date: 2011–03–01
  14. By: Strydom, D.B.; Grove, Bennie; Kruger, Y.; Willemse, B.J.
    Abstract: The use of modern marketing strategies to minimize risk exposure is not a widely adopted practice under maize producers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvested; while the current market requires innovative strategies including the use of Futures and Options as traded on SAFEX. However, due to a lack of interest and knowledge of producers understanding of modern, complicated strategies the study illustrates by using a SERF and CDF that the use of three basic strategies namely a Put-, Twelve-segment-, Three-segment- can be more rewarding. These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. The results obtained from the study illustrates that producers who tend to be more risk neutral would prefer using the Twelve-segment- or Spot-strategy while a risk averse producer would prefer the Three-segment-, or Put-strategy. It also indicates that no strategy can be labelled as the all-time best and that the choice between strategies depends on risk adverse characteristics of the producer. The purpose of the study is to prove that the adoption of a basic strategy is better than adopting no strategy at all and to convince producers to reconsider the adoption of modern marketing strategies.
    Keywords: Marketing strategies, futures, options, SERF, Crop Production/Industries, Marketing,
    Date: 2010–09
  15. By: Eveline van Leeuwen (VU University Amsterdam); Peter Nijkamp (VU University Amsterdam)
    Abstract: Despite a busy lifestyle – or perhaps as a result of a stressful lifestyle – more people than ever before make leisure trips, sometimes for a long time but in many cases just for short periods. Modern telecommunication technology brings attractive tourist destinations directly into the living rooms of potential travellers, also destinations that would otherwise have been difficult to find, such as certain cultural heritage objects. In this contribution, we will address the relevance of e-services in urban cultural tourism. Its aim is to map out the relative drivers of cultural visitors to cities with a particular view on the importance of modern e-services in the tourist sector. We focus on three case-study cities: Amsterdam, Leipzig and Genoa. We use discrete choice models and factor analysis to analyse the preferences of tourists for cultural heritage and e-services. Interestingly, in all three cities, the most important group of tourists, the cultural heritage enthusiasts, are often international tourists. This stresses the importance of multilingual e-services in order to maximise their impact on cultural heritage visitors and the tourism sector in general. In addition, it is also important to note that certain e-services become more important for tourists from further away, such as online booking systems.
    Keywords: Tourism; cultural heritage; e-services; ordered logit models; factor analysis
    JEL: L83 L86
    Date: 2011–08–09
  16. By: Sauer, Johannes; Gorton, Matthew; White, John
    Abstract: Drawing on survey data, this paper identifies the determinants of variations in farm gate milk prices for three CIS countries (Armenia, Moldova and Ukraine). We apply a multilevel modeling approach, specifically a bootstrapped and selectivity bias corrected mixedeffects linear regression model. The analysis suggests three main strategies for farmers to improve the price received for their output: consolidation, cooperation and stable supply chain relationships. While selling through a marketing cooperative has a significant and positive effect on farm gate milk prices, the majority of non-members are reluctant to join. The size of dairy operations, trust and contracting also impact positively on the prices received by farmers. Policy implications are drawn.
    Keywords: price heterogeneity, milk, cooperatives, Armenia, Moldova, Ukraine, Marketing, O13, P32, Q13,
    Date: 2011–04

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