nep-mkt New Economics Papers
on Marketing
Issue of 2012‒11‒03
twelve papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. SPATIAL RETAIL PRICING STRATEGIES FOR BEER IN GERMANY By Empen, Janine; Glauben, Thomas; Loy, Jens-Peter
  2. Advertising value of mobile marketing through acceptance among youth in Karachi By Syed Akbar, Suleman; Azam, Rehan; Muhammad, Danish
  3. Business Owners’ Preferences in Marketing Practices and their Impact on Firm Performance By Ghouri, AM; Saleem , F; Malik, A
  4. Thin and thicker slices: How advertising effectiveness depends on exposure duration. By Elsen, M.
  5. Satisfaction and protection of individual mobile telecommunications consumers By Covadonga Gijón Tascón; Teresa Garín-Muñoz,; Teodosio Pérez-Amaral
  6. Probably Not the Best Lager in the World: Effect of Brands on Consumers’ Preferences in a Beer Tasting Experiment By Matteo Maria Galizzi; Christian Garavaglia
  7. Italian print magazines and subscription discounts By Andrea Mangani
  8. Not All Price Endings Are Created Equal: Price Points and Asymmetric Price Rigidity By Snir, Avichai; Levy, Daniel; Gotler, Alex; Chen, Haipeng (Allan)
  9. When do consumers indulge in luxury? Emotional certainty signals when to indulge to regulate affect By Francine Espinoza Petersen
  10. Globalization and culture a study of purchase behavior By Muhammad, Danish; Azam, Rehan; Syed Akbar, Suleman
  11. The Relationship between Internal Satisfaction and External Satisfaction amongst Hotel Customers in Malaysia By Yunus, NKY
  12. Integration-segregation decisions under general value functions :"Create your own bundle — choose 1, 2, or all 3!" By Martín Egozcue; Sébastien Massoni; Wing-Keung Wong; Ri?ardas Zitikis

  1. By: Empen, Janine; Glauben, Thomas; Loy, Jens-Peter
    Abstract: The market for beer in Germany is special for many reasons, e.g. the purity law, the large number of breweries, or consumers who are highly loyal to local brands. To what extent brand loyalty affects spatial pricing strategies, is the main question of this article. We employ weekly retail scanner data for Germany from 2000 to 2001. We find that discounts are higher and offered more often the closer the brands are sold to the brewery they originate from. In addition, average prices are also lower on home markets. According to Anderson and Kumar (2007) this strategy is chosen because promotions generate new loyal customers who repay in periods of regular prices. Thus, loyalty of consumers may be endogenous. Alternatively, retailers use local beer brands as loss leaders, which can also explain the observed regional pricing strategies.
    Keywords: Spatial Pricing, Regional Brands, Brand Loyalty, Beer, Germany, Räumliche Preissetzung, Regionale Marken, Markentreue, Bier, Deutschland, Agricultural Finance, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2012
  2. By: Syed Akbar, Suleman; Azam, Rehan; Muhammad, Danish
    Abstract: The purpose of this paper is to investigate the key influencing factors towards mobile marketing acceptance among youth in Karachi. It further analyzes the impact of mobile marketing acceptance on its advertising value. To achieve the objective of this study a convenient sample of 247 respondents from University students, Government officials and business organizations in Karachi is taken over a two-week period during the spring of 2012. After validating the instrument, correlation analysis is performed to test the relationship of prior permission, personalization, message exposure and appropriate medium with mobile marketing acceptance, and simple liner regression is applied to see the impact of mobile marketing acceptance on its advertising value. By using SPSS software Statistical evidence at .05 level of significance proved that Prior Permission, Personalization, Frequency of Exposure and Appropriate Medium are significantly correlated with mobile marketing acceptance. Further simple liner regression proved that mobile marketing acceptance has positive impact on its advertising value among youth in Karachi. Because of convenience sampling further research is desirable to confirm and extend the present results. This identification of variables of Acceptance and its relation to advertising value will be beneficial for organization to use mobile phone as a means of communicating promotional content.
    Keywords: Mobile marketing; Advertising; Acceptance; Youth; Pakistan
    JEL: M31 M37 M30 M39
    Date: 2012–09–01
  3. By: Ghouri, AM; Saleem , F; Malik, A
    Abstract: This short paper is the extended part of Ghouri, et al. (2011) study. This paper presents the finding about the owners of restaurant and catering businesses marketing practices. This study showed their mindset about the marketing practices. The findings suggest that owners of restaurants and catering businesses practicing advertising and pricing better as compare to overall results of previous study Ghouri et al. (2011). As owner are the whole and soul of the business and can visualize the business and its activities from the top, so he/ she taking right decision regarding advertising and pricing activities of marketing. Overall marketing practices as perspective of owners are very influential on performance which indicated the owners’ will and believe about the marketing practices.
    Keywords: Owners Preferences; Marketing Practices; Firm Performance; SME
    JEL: M31
    Date: 2012
  4. By: Elsen, M. (Tilburg University)
    Abstract: Abstract: Consumers are exposed to rising numbers of ads for which they have falling amounts of time. This poses a serious challenge for advertisers and ad agencies who want to engage consumers with their ads, create positive impressions and build memory for their ads and brands. The bulk of ads in crowded media such as magazines, the Internet and outdoor media receive only a quick glance. And even if people decide to stop and take a closer look, attention is only a few seconds at most. Yet, whereas much is known about advertising processing and effectiveness after long exposures from about 5 seconds upwards and after brief exposures up to 30 milliseconds, surprisingly little is known about what happens in between these two extremes. This dissertation aims to contribute to closing this knowledge gap. It examines ads that differ in the extent to which they are representative (typical) for the advertised product category. Three empirical chapters demonstrate the decisive role that exposure duration plays in attitude and memory effects of typical and atypical ads, even within the range of a few seconds.
    Date: 2012
  5. By: Covadonga Gijón Tascón (Universidad Complutense, Spain); Teresa Garín-Muñoz, (UNED, Spain.); Teodosio Pérez-Amaral (Departamento de Economía Cuantitativa (Department of Quantitative Economics), Facultad de Ciencias Económicas y Empresariales (Faculty of Economics and Business), Universidad Complutense de Madrid.)
    Abstract: The focus of this paper is to measure customer satisfaction among private individual consumers of mobile telecommunications in Spain and the factors associated with this. Two novelties found in this paper are a focus on individual consumers and the usage of rich data to convey high quality statistical information. Our data allow us to discriminate by operator, region of residence (Autonomous Regions and provinces), gender, age, and educational level, among others. Specifically, we formulate relationships between different aspects of satisfaction and its determinants. We specify econometric models and estimate them using survey data on 4,953 individual consumers. Our results indicate that customers are less satisfied with larger carriers like Movistar and Vodafone, and are more satisfied with smaller and newer operators. We also measure the contribution of each of the aspects of satisfaction to the overall satisfaction by specifying individual equations for each one of them and estimating the importance of each of its determinants. Complaints about billing, difficulty in obtaining the required information and coverage are the major contributors to consumer (dis)satisfaction.
    Keywords: Consumer satisfaction, Consumer protection, Mobile telecommunications, Individual private consumers, Survey data, Econometric models.
    JEL: C21 D12 L52 L96
    Date: 2012–09
  6. By: Matteo Maria Galizzi; Christian Garavaglia
    Abstract: We investigate the role and impact of exposure to brands in consumers’ evaluations of lager beers, and explore its relation with exposure to intrinsic information. The first objective is to study the ability of young consumers to identify their preferred beer. The second is to explore the role played by brands, under two distinct perspectives: i) whether the effect of exposure to brands is either generalized or specific to preferred beers; ii) the ability of brands to induce perception of sensory characteristics. We propose a two-stage beer tasting experiment, exploiting information both on within-subject differences across different stages, and between-subjects differences across treatments. In each stage, participants’ evaluations for three beers was elicited using an incentive-compatible mechanism. The first stage was a blind tasting, while in the second stage beers were presented together with the bottles. Our main results are the following. Consumers seem unable to identify their preferred lager beer in a blind taste. Brands affect consumers’ evaluations: after brands are revealed, average evaluations change. Although they are stronger on most preferred brands, brand effects are generalized. Finally, extrinsic information on brands also affects and induces the description of sensorial perceptions of intrinsic characteristics of beers.
    Date: 2012–10
  7. By: Andrea Mangani
    Abstract: This paper studies the antecedents of subscription discounts of Italian print magazines. Drawing on previous empirical work on the theme, I formulate six research hypotheses regarding demand and supply factors that may affect subscription pricing. The two-sidedness of magazine industry is considered implicitly in the empirical analysis. The empirical observations show that the issue frequency, economies of scope deriving from publishing multiple titles, intra-category competition and content devoted to “hard” news are positively linked with subscription discounts. Circulation and returns do not present any evident link with subscription discounts, while the share of subscriptions on total sales does.
    Keywords: Media markets, price discrimination, quantity discounts,magazines.
    JEL: D4 L2 L82 M2
    Date: 2011–01–11
  8. By: Snir, Avichai; Levy, Daniel; Gotler, Alex; Chen, Haipeng (Allan)
    Abstract: There is evidence that 9-ending prices are more common and more rigid than other prices. We use data from three sources: a laboratory experiment, a field study, and a large US supermarket chain, to study the cognitive underpinning and the ensuing asymmetry in rigidity associated with 9-ending prices. We find that consumers use 9-endings as a signal for low prices, and that this signal interferes with price information processing. Consequently, consumers are less likely to notice a bigger price when it ends with 9, or a price increase when the new price ends with 9, in comparison to a situation where the prices end with some other digit. We also find that retailers respond strategically to this consumer bias by setting 9-ending prices more often after price increases than after price decreases. 9-ending prices, therefore, usually increase only if the new prices are also 9-ending. Consequently, there is an asymmetry in the rigidity of 9-ending prices: they are more rigid than non 9-ending prices upward but not downward.
    Keywords: Price Points; Price Recall; Sticky Prices; Rigid Prices; Price Adjustment; 9-Ending Prices; Psychological Prices
    JEL: L16 D03 M31 E31 D80 C93 C91
    Date: 2012–10–26
  9. By: Francine Espinoza Petersen (ESMT European School of Management and Technology)
    Abstract: Current theorizing suggests that the valence of an affective state alone cannot explain indulgent consumption but that this is contingent on whether indulging can improve a negative state or will not hurt a positive state. This research shows that when an emotion is associated with the appraisal of uncertainty (certainty), consumers infer that their affective state can (cannot) change. As a result, people in a negative affective state will indulge more when their affect is associated with uncertainty because indulging can help repair the negative state, but people in a positive affective state will indulge more when their affective state is associated with certainty because indulging will not hurt their positive state. Reconciling earlier research reporting apparently inconsistent results linking emotional valence, affect regulation, and indulgence, these findings suggest that the certainty appraisal of specific emotions is important in predicting indulgent consumption to regulate one’s affect. Implications are discussed.
    Keywords: emotion, certainty, appraisal, affect regulation, indulgence, luxury consumption
    Date: 2012–10–22
  10. By: Muhammad, Danish; Azam, Rehan; Syed Akbar, Suleman
    Abstract: The purpose of this research is to investigate that whether Globalization, culture and purchase behavior differ across the three demographic factors (age, income and gender). Further study empirically substantiate that the globalization is impacting on consumer culture and purchase behavior of the Pakistani consumer. The data comprised of 250 respondents who are urban, educated, middle-class belongs to the different organizations operating in Karachi. The data was collected through structured and self-administered questionnaire. To test first objective Independent sample t test was used. Results shows that consumers who are young, having high income, and female are more inclined towards globalization, having western life style and conspicuous consumption as compare to old, low income group and male respectively. To test second objective the simple linear regression analysis was used. F and T statistics are significant against .05 level of significance shows that Globalization is impacting on consumer culture and purchase behavior. This paper provides understanding about changing life style and their consumption pattern of consumers in Karachi which would enable organizations to make more sound strategies to cater consumers.
    Keywords: Globalization; Culture; Purchase Behavior
    JEL: M30
    Date: 2012–09–15
  11. By: Yunus, NKY
    Abstract: This paper is focused on hotel customers' internal and external satisfaction. Some previous studies had only focused on the customers' external satisfaction and only a few studies had managed to link between the two variables. The study also looked into factors which may act as internal variables such as the employer-employee relationship, employee relationship as well as employee- customer relationship. As for the external variables, these may involve looking into other aspects of satisfaction, such as customer satisfaction towards the service and facilities provided by the hotel. The main focus of the study was to view the relationship between the customers' intrinsic satisfaction with the customers' external satisfaction and the factors which may influence the customers. The data had been randomly gathered from 120 samples by questionnaire distribution among hotel guests and employees in Kuala Lumpur, Port Dickson, Penang, Trengganu and Kota Kinabalu. Overall, this study had managed to uncover the factors which influenced customers' internal and external satisfaction and also discovered possible relationship between the two types of satisfaction.
    Keywords: Employee Satisfaction; Customer Satisfaction; Service Quality; Service; Hotel Industry; Internal Factors; External Factors
    JEL: M31
    Date: 2012
  12. By: Martín Egozcue (Universidad de la República); Sébastien Massoni (Centre d'Economie de la Sorbonne - Paris School of Economics); Wing-Keung Wong (Hong Kong Baptist University); Ri?ardas Zitikis (University of Western Ontario)
    Abstract: Whether to keep products segregated (e.g., unbundled) or integrate some or all of them (e.g., bundle) has been a problem of profound interest in areas such as portfolio theory in finance, risk capital allocations in insurance, and marketing of consumer products. Such decisions are inherently complex and depend on factors such as the underlying product values and consumer preferences, the latter being frequently described using value functions, also known as utility functions in economics. In this paper, we develop decision rules for multiple products, which we generally call ‘exposure units’ to naturally cover manifold scenarios spanning well beyond ‘products’. Our findings show, for example, that the celebrated Thaler's principles of mental accounting hold as originally postulated when the values of all exposure units are positive (i.e., all are gains) or all negative (i.e., all are losses). In the case of exposure units mixed-sign values, decision rules are much more complex and rely on cataloging the Bell-number of cases that grow very fast depending on the number of exposure units. Consequently, in the present paper we provide detailed rules for the integration and segregation decisions in the case up to three exposure units, and partial rules for the arbitrary number of units.
    Keywords: Bundling, marketing, mental accounting, portfolio theory, value function, utility function, majorization, functional inequalities, Bell number.
    JEL: C61 D01 D81 M31
    Date: 2012–09

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