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

  1. Learning in Advance Selling with Heterogeneous Consumers By Oksana Loginova; X. Henry Wang; Chenhang Zeng
  2. Brand equity – how is it affected by critical incidents and what moderates the effect By Sven Tischer; Lutz Hildebrandt; ;
  3. How does religion matter in the marketplace for minority settings? The case of Muslim consumers in France By Jamel Khenfer; Elyette Roux
  4. Consumer choice and local network effects in mobile telecommunications in Turkey By Karaçuka, Mehmet; Çatik, A. Nazif; Haucap, Justus
  5. Consumption style among young adults toward their shopping behavior:an empirical study in Pakistan By Azam, Rehan; Muhammad, Danish; Syed Akbar, Suleman
  6. The effect of pharmacies’ right to negotiate discounts on the market share of parallel imported pharmaceuticals By Granlund, David

  1. By: Oksana Loginova (Department of Economics, University of Missouri-Columbia); X. Henry Wang (Department of Economics, University of Missouri-Columbia); Chenhang Zeng (Research Center for Games and Economic Behavior, Shandong University)
    Abstract: The advance selling strategy is implemented when a firm offers consumers the opportunity to order its product in advance of the regular selling season. Advance selling reduces uncertainty for both the firm and the buyer and enables the firm to update its forecast of future demand. The distinctive feature of the present study of advance selling is that we divide consumers into two groups, experienced and inexperienced. Experienced consumers know their valuations of the product in advance. The presence of experienced consumers yields new insights. Specifically, pre-orders from experienced consumers lead to a more precise forecast of future demand by the firm. We show that the firm will always adopt advance selling and that the optimal pre-order price may be at a discount or a premium relative to the regular selling price.
    Keywords: advance selling, the Newsvendor Problem, demand uncertainty, experienced consumers, inexperienced consumers.
    JEL: D43 L13 C72
    Date: 2012–09
  2. By: Sven Tischer; Lutz Hildebrandt; ;
    Abstract: To explore how occurring critical incidents affect customer-brand relations, this study measures the impact on the basis of an online experiment. For this purpose, 1,122 usable responses are gathered considering the smartphone brands of Apple and Nokia as well as different scenarios. The respective reactions to these negative incidents are evaluated using the concept of customer-based brand equity. More precisely, a structure equation model is specified and differences in latent factor means are estimated taking into account perceived quality, various brand associations, loyalty and overall brand equity. The findings indicate that brand equity dimensions are not equally affected. Moreover, the results demonstrate that both brand equity and the business relationship before crisis moderate the effect of distinct critical incidents.
    Keywords: Brand equity, critical incidents, negative publicity, structure equation modeling, online experiment
    JEL: M14 M31 C12 C14 C38 C93
    Date: 2012–10
  3. By: Jamel Khenfer (IAE Aix-en-Provence - Institut d'Administration des Entreprises - Aix-en-Provence - Université Paul Cézanne - Aix-Marseille III, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - Institut d'Administration des Entreprises (IAE) - Aix-en-Provence - Université Paul Cézanne - Aix-Marseille III : EA4225); Elyette Roux (IAE Aix-en-Provence - Institut d'Administration des Entreprises - Aix-en-Provence - Université Paul Cézanne - Aix-Marseille III, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - Institut d'Administration des Entreprises (IAE) - Aix-en-Provence - Université Paul Cézanne - Aix-Marseille III : EA4225)
    Abstract: This article proposes to go beyond the view of consumer religiosity as a stable characteristic. Rather, focusing on minority cultural settings, this research presents religiosity as a mobilized resource or a constraint the consumer faces in purchasing environments. The context preceding the situation as well as the marketplace are identified as the causes of the contextualized impact of religiosity in consumer decision making. The objective of this research is to explore this phenomenon in order to identify the factors intervening in the process.
    Keywords: consumer behavior; minority cultural setting; religion; religiosity; Consumer Culture Theory
    Date: 2012–05–22
  4. By: Karaçuka, Mehmet; Çatik, A. Nazif; Haucap, Justus
    Abstract: Turkish consumer survey data is used to analyze the main factors that affect consumers' choice of different mobile telecommunications networks. The analysis shows that consumers' choice is significantly affected by the choices of other consumers with whom the consumer is more likely to interact. The results show that local network effects exist and consumer characteristics have significant effects on consumer choice. This finding means that consumers are more likely to be affected by the choices of other people within their local area than by the overall size of a network. The results also suggest that local effects may outweigh macro network effects at least in Turkey. --
    Keywords: mobile telecommunications,network effects,discrete choice analysis
    JEL: C23 L13 L9
    Date: 2012
  5. By: Azam, Rehan; Muhammad, Danish; Syed Akbar, Suleman
    Abstract: The purpose of this study was to substantiate the consumption styles of adolescents as customer. The study was executed in Karachi, Pakistan by applying consumption style inventory scale. The data covered of 1,048 respondents who are young and educated mostly students, which belong to the different universities in Karachi. The data was collected through structured and self administered questionnaire. To test objective Independent sample t test was used. The results show that young females are more shopping influenced, fashion conscious, recreational, and confused over-choice as compare to males whereas males are more reliance on media, perfectionist, brand conscious, and impulsive as compare to females for their consumption style toward shopping behavior. This research provides understanding about adolescents’ decision making style of consumers in Karachi which would enable organizations to make more appropriate strategies to cater youth consumers market.
    Keywords: Consumption style; gender; independent sample t-test; young adults; shopping behavior
    JEL: P36 M3 D11 L67 D1 L1 I2 D12 C44 J1 I23 D01
    Date: 2012–09–20
  6. By: Granlund, David (Department of Economics, Umeå School of Business and Economics, Umeå University)
    Abstract: The market share for parallel imports when pharmacies can negotiate discounts with parallel traders and sellers of locally sourced products is analyzed both theoretically and empirically. The theoretical model shows that, with discount negotiations, pharmacies will sell locally sourced products to all consumers that prefer these or are indifferent between these and parallel imported products. The explanation is that the parallel traders have cost disadvantages because of their repacking and trading costs. Sellers of locally sourced products will therefore always underbid the marginal prices of parallel traders and this gives pharmacies an incentive to sell locally sourced products. The empirical results show that a reform allowing discount negotiations reduced the market share for parallel imports by about 11 percentage points to reach 31%. The most important mechanism is that the reform has reduced the probability that pharmacies offer consumers cheaper parallel imported substitutes.
    Keywords: Drugs; Margins; Parallel imports; Parallel trade; Pharmacies
    JEL: I11 I18 L13 L51 L65
    Date: 2012–11–01

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