nep-mkt New Economics Papers
on Marketing
Issue of 2012‒07‒23
nine papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Marketing Local Foods by Food Cooperatives By Katchova, Ani L.; Woods, Timothy A.
  2. The Role of sensory experience on Spanish consumer’s willingness to pay for sustainable produced food By Avitia, Jessica; Costa-Font, Montserrat; Gil, Jose Maria; Lusk, Jayson L.; Echeverria, Gemma
  3. Newspaper and Internet Display Advertising – Co-Existence or Substitution? By Nadine Lindstädt; Oliver Budzinski
  4. Country of Origin Advertising and US Demand of Imported Wine: An Empirical Analysis By Sam, Abdoul G.; Thompson, Stanley R.
  5. Effect of Price-Discount Distribution in Multi-Unit Price Promotions on Sales Value and retailers’ revenue: Evidence from Multi-Unit Auctions By Akaichi, Faical; Nayga, Rodolfo M., Jr.; Gil, Jose Maria
  6. Quality attributes and socio-demographic factors affecting channel choices By Lupin, Beatriz; Rodriguez, Elsa M.
  7. Marketing Boards as Hybrid Governance: A study of the Canadian hog industry By Royer, Annie; Menard, Claude; Gouin, Daniel-Mercier
  8. Commitment in Collective Marketing Relationships: Evidence from Coffee Cooperatives in Costa Rica By Wollni, Meike; Fischer, Elisabeth
  9. Marketing Transformation at Upstream Dairy Chain after Milk Scandal in China: Evidence from Greater Beijing By Luan, Hao; Jia, Xiangping; Huang, Jikun; Rozelle, Scott

  1. By: Katchova, Ani L.; Woods, Timothy A.
    Abstract: Consumer interest in locally produced foods has been increasing and many grocery retailers and other businesses have been involved in marketing local foods to interested consumers. We study the business strategies that food consumer cooperatives in the U.S. use to promote local foods to their patrons. Data are collected from a national survey of the general managers of food cooperatives. This study’s objectives are: 1) to analyze the types of business strategies and frequency of use for these business strategies to promote local foods and 2) to identify the types of food cooperatives that are more versus less intense users of these promotion strategies. Unlike previous studies, the emphasis for this study is on promotion/marketing strategies as opposed to sourcing/working with local farmers business strategies. We use principal component analysis and cluster analysis to group food co-ops based on their involvement with local food promotion activities. We find that food co-ops can be grouped into three main clusters based on the size of the food co-op and its location. These findings can be used by food cooperatives and other local food retailers to attract consumers and increase local food sales.
    Keywords: food consumer cooperatives, local foods, consumers., Food Consumption/Nutrition/Food Safety, Marketing, Q13,
    Date: 2012
  2. By: Avitia, Jessica; Costa-Font, Montserrat; Gil, Jose Maria; Lusk, Jayson L.; Echeverria, Gemma
    Abstract: For a variety of reasons, Spanish growth in demand for organic and integrated products has not kept up with supply. This work focused on the effect of information and sensory issues on purchase behaviour in relation to sustainable agricultural production. Using experimental auctions and results from (trained and untrained) sensory Panels, we studied the preferences for attributes related to food sustainability. Spanish consumers have a positive attitude towards sustainable food due to environmental concerns, health concerns, and trust in certification and market agents. However, the premium they are willing to pay for these products is lower than the current market price. Furthermore, “search” and sensory “experience” influence consumers’ purchase behavior.
    Keywords: Spain, organic production, integrated production, sensory issues, consumer behaviour, willingness to pay., Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,
    Date: 2012
  3. 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 been experiencing declining circulation figures and diminishing advertising revenues for several years – both effects might pose a threat to the continuing existence of (print) newspapers. In an earlier paper, Lindstädt & Budzinski (2011) argued from a theoretical viewpoint that industry-specific patterns exist that determine substitution or complementation effects between internet and newspaper advertising. It was argued that retail advertising, in particular, may offer a niche for regional/local newspapers that can be expected to present a sustainable segment of complementarity along with the otherwise mostly substitutional advertising markets. This paper empirically tests these hypotheses by analyzing advertising spending data for newspaper and internet display advertising of 13 different industries in the U.S. from 2001-2010. We find evidence for some of the hypotheses. Whereas some industries showed clear substitution effects between internet display and newspaper advertising, the majority of our hypotheses could be only partly rejected: newspaper substi-tution effects could be observed, however, in the direction to traditional media platforms instead of internet display advertising. For two retail-sub-industries, the hypotheses could not be rejected for the analyzed period. The authors would like to thank the College of Communications at the Pennsylvania State University and in particular Anne Hoag and Dennis Davis for hosting Nadine Lindstädt as a Research Visiting Scholar in 2010/2011 which made it possible to access and use the Kantar Media Intelligence Ad$pender™ database for this research.
    Keywords: : media economics, advertising, complementation, substitution, newspapers, internet
    JEL: L82 A20 L13 M21
    Date: 2012–04
  4. By: Sam, Abdoul G.; Thompson, Stanley R.
    Keywords: Marketing,
    Date: 2012
  5. By: Akaichi, Faical; Nayga, Rodolfo M., Jr.; Gil, Jose Maria
    Abstract: Using multi-unit auctions, we examined the effect of different distributions of price discount across multiple units of a relatively new product on consumers’ Willingness to Pay (WTP), sales value and retailers’ revenue. We found that allowing the price discount to be increasing in the number of units largely increases willingness to pay, sales value and retailers’ revenue and that a price discount that is uniformly distributed across units also has the potential to motivate consumers to buy more units of the new product. However, multi-unit price promotions that concentrate all the amount of price discount on the last unit only provides a weak positive effect on sales value.
    Keywords: Multi-unit price promotions, multi-unit auctions, price discount distributions, Agribusiness, Marketing, C910, D120, M310,
    Date: 2012
  6. By: Lupin, Beatriz; Rodriguez, Elsa M.
    Abstract: Potato is an important staple food and horticultural crop for Argentina and it is included in almost every meal prepared by households. The annual average per capita consumption of potatoes is 40 kg. Despite the rapid rise of supermarkets, small fruit and vegetable shops still dominate horticultural retail in Argentina. The fresh potato quality is a wide and subjective notion that deals with different kinds of attributes e.g., colour, flavor, nutritional contents, added substances during the productive processes and risks perceptions. Commercial channel preferences, knowledge about varieties, and opinions regarding bad quality attributes are important factors affecting fresh potatoes consumers choices. The aim of this research is to examine how consumers perceive quality characteristics of fresh potatoes and to identify quality attributes and socio-demographics factors affecting channels choices for buying potatoes. A representative sample of the population in this city included 500 randomly selected households. The urban households survey was carry out in the city of Mar del Plata, in June 2009 using a questionnaire – based on face to face interviews. The principal place of respondents choosing to purchase fresh potatoes is the fruits and vegetables stores (72 %), followed in importance with much lower percentages by supermarkets / hypermarkets (15 %) and other channels, such as community fairs, wholesaler market, self-production and direct vegetable delivery by producer (12 %). In order to examine the relationship between preferences for certain quality attributes of fresh potato and socio-economic variables of households about their choice of purchase channel, we applied a multinomial logit regression (MNL). According to the econometric results, we can conclude that fruits and vegetables stores are preferred by decision maker buying fresh potatoes with brown skin colour, with knowledge about potato carbohydrate contribution, and having age under 55 years old. Also this channel is chosen, compared with the supermarkets / hypermarkets, by those consumers that consider price as an important factor when buying unpacked fresh potatoes.
    Keywords: Consumer Preferences, Fresh potatoes, Marketing channels, Argentina, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, D Microeconomics, D01 Household Behavior and Family Economics, D12 Consumer Economics: Empirical Analysis, Q Agricultural and Natural Resources Economics, Environmental and Ecological Economics, Q1 Agriculture, Q13 Agricultural Markets and Marketing, Cooperatives, Agribusiness,
    Date: 2012
  7. By: Royer, Annie; Menard, Claude; Gouin, Daniel-Mercier
    Abstract: Because of their perishable nature and the impact of their quality on consumers, agricultural products have always raised important problems of coordination and control with high transaction costs. The recent period in the agrifood industry has registered substantial evolution in devices intended to provide vertical coordination among the various agents of value chains. The most noticeable evolution might be the progressive dismantlement of collective organizations in favor of a contractual approach that would be more compatible with market-oriented policies. In this paper, we revisit the role of marketing boards, mainly through the Canadian experience, more specifically in the Province of Québec. Examining their nature and their role, we intend to better understand the type of problems marketing boards were trying to face and still do, and to assess their success and failures in organizing complex transactions with strong asymmetries among partners who need to coordinate while keeping decision rights distinct. We shall argue that their occurrence in very different contexts as well as their resilience is rooted in a relatively successful combination of organizational properties, embedded in their hybrid nature, and institutional legitimacy, thanks to the guarantees they provide.
    Keywords: Hybrid Governance, Marketing Board, Institutions, Regulation, Transaction Costs, Marketing, D02, D23, L38, Q10, Q13,
    Date: 2012
  8. By: Wollni, Meike; Fischer, Elisabeth
    Abstract: This article investigates commitment in cooperative marketing relationships. Sideselling by members poses a serious threat to the viability of cooperatives, since services provided to members have to be financed through collective sales. We develop a model that demonstrates how the size of the producer determines the degree of individual commitment under the provision of public and private collective goods. Based on survey data from cooperatively organized coffee farmers in Costa Rica, we find that smaller and larger farmers are more committed, while medium-sized farmers side-sell a larger share of their produce to private buyers. Some broader implications for collective marketing relationships are discussed.
    Keywords: cooperatives, commitment, side-selling, coffee, Costa Rica, Crop Production/Industries, International Development, Marketing, Q12, Q13,
    Date: 2012
  9. By: Luan, Hao; Jia, Xiangping; Huang, Jikun; Rozelle, Scott
    Keywords: Marketing,
    Date: 2012–08

This nep-mkt issue is ©2012 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.
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