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on Marketing |
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Issue of 2012‒01‒03
fourteen papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Franziska Krüger (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg) |
| Abstract: | Literature indicates that culture influences consumers' expectations on a product or service, how they perceive performance, handle disconfirmation resulting from the comparison of expectations and perceived product or service performance, as well as their satisfaction. The study compares the confirmation/disconfirmation-paradigm between Chinese and U.S. American consumers. The influence of Hofstede's (2001) cultural dimension on disconfirmation and satisfaction is examined. The results show that the process of customer satisfaction differs across national borders. For U.S. American consumers the perceived performance has a stronger effect on satisfaction than for Chinese consumers. A direct influence of expectations on satisfaction can be observed only for Chinese consumers. Uncertainty avoidance and power distance influence customers' disconfirmation and satisfaction. The findings of the study contribute to current marketing literature and management practice in order to explain differences in cross-cultural consumer behaviour. The implications relate to the management of expectations, product development, and quality management. |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:mag:wpaper:110027&r=mkt |
| By: | Béatrice Parguel (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris IX - Paris Dauphine); Florence Benoit Moreau (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris IX - Paris Dauphine); Larceneux Fabrice (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris IX - Paris Dauphine) |
| 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. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00654101&r=mkt |
| By: | Winand Emons; Claude Fluet |
| Abstract: | Two firms produce a good with a horizontal and a vertical characteristic called quality. The difference in the unobservable quality levels determines how the firms share the market. We consider two scenarios: In the first one, firms disclose quality; in the second one, they send costly signals thereof. Under non-comparative advertising a firm advertises its own quality, under comparative advertising a firm advertises the quality differential. In either scenario, under comparative advertising the firms never advertise together which they may do under non-comparative advertising. Moreover, under comparative advertising firms do not advertise when the informational value to consumers is small. <P> |
| Keywords: | quality, advertising, disclosure, signalling, |
| JEL: | D82 L15 M37 |
| Date: | 2011–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2011s-75&r=mkt |
| By: | Nadine Lindstädt (Department of Environmental and Business Economics, University of Southern Denmark); Oliver Budzinski (Department of Environmental and Business Economics, University of Southern Denmark) |
| Abstract: | Newspapers have experienced declining circulation figures and declining advertising revenues for several years. In particular, declining advertising figures put a threat on newspapers – this is especially severe in the US where 73% of their revenues are generated through advertising. On the advertising side many companies have expanded their advertising expenditure towards online. Consequently, there are concerns about online advertising substituting newspaper advertising – in the same way as it has been feared for many years for the readership side. Both possible effects might put a threat on the further existence of (print) newspapers. However, though the internet – compared to newspapers – offers a variety of advantages for advertising companies, substitution tendencies cannot be generalized. In particular, we argue that newspaper advertising offers great benefits for the retailing industry. Consequently, we believe that retail advertising offers a niche for regional and local newspapers that can be expected to represent a sustainable segment of complementarity within the otherwise predominantly substitutional advertising markets. The paper substantiates this argument by applying the economic theory of advertising – in particular the differentiation between persuasive/complementary and informative advertising. The latter one presents the reason for retailers to continue advertising in newspapers. Subsequently, we conclude that no complete substitution between newspaper and online advertising can be expected to take place on the advertising side in the foreseeable future. The authors like to thank the participants of the EMMA-conference in Moscow (June 2011) and the members of the research group ‘Markets & Competition’ as well as Anna Lund Jepsen for helpful comments on an earlier version of this paper. |
| Keywords: | : Media economics, advertising, competition, complementation, substitution, online |
| JEL: | L82 A20 L13 M21 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:sdk:wpaper:113&r=mkt |
| By: | Muller, L.; Ruffieux, B. |
| Abstract: | In a laboratory experiment, we study consumer responses to 7 Nutrition ‘Front of Pack’ Logos. In addition to the Guideline Daily Amounts (GDA) logo, the six other logos vary according to three criteria: (i) Granularity (What object do we rate? Product vs. Nutrient), (ii) Reference Set (How do we distinguish between products? All Products vs. Product Family), and (iii) Policy Range (Do we include bad ratings? Green vs. Green and Red). 364 subjects, all parents accustomed to shopping, were asked to fill their shopping cart for their family for the next couple of days in an e-shopping environment. To do so, they could choose among 273 products grouped into 35 product families. They were then given the opportunity to revise their shopping cart after one of the seven logos had been exhaustively applied to all 273 products. The nutritional quality of a cart was assessed according to its salt, free sugar and saturated fatty acids content. We found that all of the seven logos significantly improved the nutritional quality of the shopping carts. On average, rating the product rather than the nutrient was more efficient. Informing on both healthy and unhealthy products was also more efficient on average but had significant toxic effects. The GDA logo lies at the median of our logo chart list. Unlike free sugar and saturated fatty acids, salt appears to be a particular case, as our logos proved to be insufficient for reducing its consumption. |
| Keywords: | FOOD RATING SYSTEMS;LABEL;NUTRITION POLICY;CONSUMER BEHAVIOR;FRANCE |
| JEL: | C93 D12 I18 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:201105&r=mkt |
| By: | Chakraborty, Ratula (Norwich Business School, University of East Anglia); Dobson, Paul (School of Business and Economics, Loughborough University); Seaton, Jonathan S. (Corresponding Author, Department of Economics, University of Warwick,); Waterson, Michael (Department of Economics, University of Warwick, JEL classification: L16 ; L81 ; E31 Key words: Pricing behaviour ; supermarket prices ; inflationary behaviour ; price indexes) |
| Abstract: | We investigate micro pricing behaviour in groceries (the UK’s most important consumer market) over eight years including the inflationary period of early 2008. We find behaviour sharply distinguished from most previous work, namely that overall basket prices rise but more individual prices fall than rise! This is consistent with retailers obscuring the fact of rising basket prices. We employ a significant new source of data that captures cross-competitor interplay in prices at a very detailed level. Unusually but importantly, our work takes into account that consumers buy baskets of goods, rather than individual products, when shopping at supermarkets. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:975&r=mkt |
| By: | Emilio Calvano; Bruno Jullien |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:igi:igierp:427&r=mkt |
| By: | Weeds, Helen |
| Abstract: | Technological change is transforming creative media industries. Digitisation lowers recording, storage, reproduction and distribution costs, while computer-based editing facilitates higher quality and special effects. With electronic distribution a vast range of content can be made available to consumers across global markets. The distribution of industry sales appears to be shifting: the late 20th century was the era of the 'hit parade' but attention has now shifted to the 'long tail'. This paper develops a model of differentiated products with endogenous quality and heterogeneous firms to examine the implications of technological change for product variety, quality, and the distribution of firms in media industries. |
| Keywords: | creative industries; digital media; long tail; superstars |
| JEL: | L11 L15 L82 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8719&r=mkt |
| By: | Aravindakshan, Sreejith; Janka Negawo, Worku; Humayun Kabir, Mir; Galib, Md. Waliul |
| Abstract: | Its diverse agroecology has endowed Ethiopia with enormous honey production potential in Africa. Nevertheless, due to the undeveloped production system and poor market linkage with the global arena, the country could not fetch proportional benefits from this resource. To enhance better understanding on the problem and recommend appropriate improvement measures for the sector, prevailing opportunities and constraints were explored in relation to honey export to Denmark. Major honey stakeholders were contacted to assess the opportunities and constraints of Ethiopian honey export. Semi-structured interview, participatory appraisal technique and short questionnaire interview were adopted for data collection. The results show improving opportunities for exporting companies through creating conducive policy and support from the government of Ethiopia and NGOs. On the other hand, current supply of honey by producers in terms of quantity and quality are major constraints for the exporters. In relation to importer, there are growing demands for Ethiopian honey due to its organic source. Similarly, consumers. survey showed that the demand for organic honey has the highest priority in contrast to origin and price. However, most consumers lack information and have concern over Ethiopian honey; especially in terms of quality and characteristics. Development strategy that improves smallholder honey production capacity, better business communication with potential Danish honey importers and promotion of organic honey to consumers may make a significant contribution to enhance Ethiopian honey export to Denmark. |
| Keywords: | Non-timber Forest Products; Ethiopia; honey; export; markets; Denmark |
| JEL: | N57 Q23 N50 F14 D40 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35483&r=mkt |
| By: | Mariacristina De Nardi; Eric French; David Benson |
| Abstract: | We document some key facts about aggregate consumption and its subcomponents over time. We then document the behavior of some important determinants of consumption, such as consumers’ expectations about their future income, and changes in the consumers’ wealth positions. Finally, we use a simple permanent income model to show that the observed drop in consumption during the Great Recession can be explained by the observed drops in wealth and income expectations. |
| JEL: | E10 E21 E31 H31 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17688&r=mkt |
| By: | Anneke Kosse; David-Jan Jansen |
| Abstract: | Is having a foreign background a relevant factor in choosing between payment instruments in consumer point-of-sale transactions? We analyze this question using a unique diary survey in which both participants with a Dutch and a foreign background documented their daily purchases. Payment habits acquired in home countries continue to affect the mode of payment after migration. First generation migrants born in cash-oriented economies are more likely to use cash in point-of-sale transactions. However, the second-generation has similar payment habits as individuals with a Dutch background. This finding suggests that payment behaviour is not passed on from generation to generation, but moulded by host country payment habits. Finally, we suggest that special information campaigns to increase debit card usage will not have clear net social benefits. |
| Keywords: | consumer payments; habits; debit card; cash, migration |
| JEL: | C25 D12 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:328&r=mkt |
| By: | Piya, Luni; Maharjan, Keshav Lall; Joshi, Niraj Prakash; Dangol, Dharma Raj |
| Abstract: | Chepangs are highly marginalized indigenous nationalities of Nepal, who live nearby the forests that are rich in Non-timber Forest Products (NTFPs) of commercial importance. These NTFPs can be a potential source of income for Chepangs. This study describes the role of Chepangs in the marketing channel of those NTFPs and analyses the household socio-economic characteristics that influence the collection and marketing of NTFPs by Chepangs in Shaktikhor VDC of Chitwan district using backward multiple regression method. Empirical evidences show that collection and marketing of NTFPs is not an attractive source of income especially for those relatively better-off Chepang households who possess higher landholdings, food self-sufficiency, and income from other alternative sources. This is because the current price offered for the NTFPs collected by the community is very nominal, that do not even cover the labour costs involved. Praja Cooperative Limited (PCL), a Chepang community based institution in Shaktikhor, is struggling to provide better prices for Chepangs. However, it is facing challenges due to limited institutional management capacity of Chepangs. Further empowerment of PCL can contribute to improve the bargaining power of Chepang community in NTFP trade. |
| Keywords: | backward multiple regression; household socio-economic characteristics; indigenous nationalities; marketing channel; Praja Cooperative Limited |
| JEL: | M31 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35389&r=mkt |
| By: | Hendrik Schmitz; Nicolas R. Ziebarth |
| Abstract: | This paper provides field evidence on (a) how price framing affects consumers¿ decision to switch health insurance plans and (b) how the price elasticity of demand for health insurance can be influenced by policymakers through simple regulatory efforts. In 2009, in order to foster competition among health insurance companies, German federal regulation required health insurance companies to express price differences between health plans in absolute Euro values rather than percentage point payroll tax differences. Using individuallevel panel data, as well as aggregated health plan-level panel data, we find that the reform led to a sixfold increase in an individual¿s switching probability and a threefold demand elasticity increase. |
| Keywords: | Health insurance, health plan switching, price competition, price elasticity, SOEP |
| JEL: | H51 I11 I18 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp423&r=mkt |
| By: | Wie, Jiegen; Wennlock, Magnus; Johansson, Daniel J.A.; Sterner, Thomas |
| Abstract: | This paper analyzes how fossil fuel-producing countries can counteract climate policy. We analyze the exhaustion of oil resources and the subsequent transition to a backstop technology as a strategic game between the consumers and producers of oil, which we refer to simply as “OECD” and “OPEC,” respectively. The consumers, OECD, derive benefits from oil, but worry about climate effects from carbon dioxide emissions. OECD has two instruments to manage this: it can tax fuel consumption and decide when to switch to a carbon-neutral backstop technology. The tax reduces climate damage and also appropriates some of the resource rent. OPEC retaliates by choosing a strategy of price discrimination, subsidizing oil in its domestic markets. The results show that price discrimination enables OPEC to avoid some of the adverse consequences of OECD’s fuel tax and its switch to the backstop technology by consuming a larger share of the oil in its own domestic markets. Our results suggest that persuading fossil exporters to stop subsidizing domestic consumption will be difficult. |
| Keywords: | dynamic games, stock externalities, carbon tax, non-renewable resources, energy subsidies |
| JEL: | D62 H23 Q34 Q54 |
| Date: | 2011–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-11-26&r=mkt |