nep-mkt New Economics Papers
on Marketing
Issue of 2012‒12‒22
three papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Pop-up stores as a foreign operation mode for retailers By Karine Picot-Coupey
  2. Price Response, Asymmetric Information, and Competition By Joshua Sherman; Avi Weiss
  3. Network effects, Customer Satisfaction and Recommendation on the Mobile Phone Market By Thomas Cadet; Sophie Larribeau; Thierry Pénard

  1. By: Karine Picot-Coupey (Graduate School of Management (IGR-IAE), University of Rennes1 - CREM UMR CNRS 6211, France)
    Abstract: Purpose: The purpose of this research is (1) to describe the characteristics of a pop-up store in an international context, (2) to investigate the motives for its choice and (3) to analyse how it is managed. <br> Design/methodology/approach: A multiple-case study was adopted. Research was carried out through secondary data sources, social media observation and semi-structured interviews with senior managers in charge of developing and managing pop-up stores internationally. A conceptualizing content analysis was carried out manually and using NVivo software. Findings: The main results concern: <br> - the characteristics of an international pop-up store: location, design and architecture, merchandise mix and events associated to the store are key characteristics that exhibit differences; <br> - the three motives for its choice: testing and adapting the concept to foreign consumers who are unfamiliar with; raising and sustaining the international profile of a retail brand; developing relationships networks with stakeholders in foreign markets; <br> - its management: the management of pop-up stores as foreign operation modes is dynamic. It varies from mode switch at the entry stage to mode combination at the further expansion stage.<br> Research limitations/implications: The research results suggest avenues for future research,especially about how the concept of international pop-up store will evolve over time.<br> Practical implications: The research provides guidelines to international retail managers in order to choose a pop-up store as a FOM in appropriate situations.<br> Originality/value: The research brings new understanding into the characteristics, the motives for the choice and the management of a pop-up store in an international context.<p>
    Keywords: pop-up store, foreign operation mode, retailing, internationalisation
    Date: 2012–11
  2. By: Joshua Sherman; Avi Weiss (Bar-Ilan University)
    Abstract: We compare predictions from a theoretical model based on the structure of the main outdoor retail market in Jerusalem with the results of an empirical analysis of price response to changes in cost. We find that firms without adjacent competition exhibit both upward and downward price rigidity, an outcome we ascribe to asymmetric information between the consumer and the firm. Given that previous studies have focused on downward price rigidities of firms with market power, our findings highlight the importance of accounting for transitory information asymmetries between the consumer and the firm when studying price rigidity.
    Keywords: price response, price rigidity, information asymmetry, market power
    JEL: L11 L13
    Date: 2012–10
  3. By: Thomas Cadet (University of Rennes1 - CREM UMR CNRS 6211, France); Sophie Larribeau (University of Rennes1 - CREM UMR CNRS 6211, France Keywords: network effect, mobile operator, satisfaction, recommendation); Thierry Pénard (University of Rennes1 - CREM UMR CNRS 6211, France)
    Abstract: On mobile phone markets that have reached the maturity stage, customer recommendation becomes a critical focus for operators to attract subscribers from rival operators. Referral propensity is also an indicator of subscriber satisfaction and loyalty. The aim of this paper is to examine the factors that influence customer recommendation. Precisely, we want to know whether referral propensity is more driven by supply-side effects (i.e. characteristics of mobile services) or demand-side effects (i.e. network effects). We use data from French subscriber surveys. The main findings are that referrals depend primarily on supply-side effects: operators’ brand image, the price and quality of services, and customer relations. Price, however, is considered to be a less significant factor than the quality of service when it comes to recommending an operator. Also, information on services and the variety of offerings available, as well as network effects, do not seem to influence referral propensity.
    Keywords: network effect, mobile operator, satisfaction, recommendation, customer referral
    JEL: D12 L96
    Date: 2012–12

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