nep-mkt New Economics Papers
on Marketing
Issue of 2013‒02‒03
five papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Dynamic Voluntary Advertising and Vertical Product Quality By Tenryu, Yohei; Kamei, Keita
  2. Consuming organic products: altruistic or selfish motives? By Bergès, Fabian; Monier-Dilhan, Sylvette
  3. Competition in Posted Prices With Bargaining By David Gill; John Thanassoulis
  4. Offres promotionnelles, gaspillage alimentaire et scepticisme : une revue de littérature et proposition d’un cadre d’analyse By Le Borgne, G.; Sirieix, L.
  5. Improving Customer Acquisition Models by Incorporating Spatial Autocorrelation at Different Levels of Granularity By P. BAECKE; D. VAN DEN POEL

  1. By: Tenryu, Yohei; Kamei, Keita
    Abstract: We investigate the dynamic relationship between advertising and product quality under duopolistic competition. By using a simplified vertical product differentiation model with voluntary advertising, we show that the firm with larger market share has a larger advertising share and that there is a positive relationship between the difference in product quality and the number of customers in an industry.
    Keywords: Advertising; product quality; differential games; duopoly
    JEL: L13 C72
    Date: 2012–12–01
  2. By: Bergès, Fabian; Monier-Dilhan, Sylvette
    Abstract: The expansion of organic agriculture has been a key issue in sustainable development. We study consumers’ motives for purchasing organic agricultural products by analysing a basket of goods from a panel of French households. Buying organic products can be motivated by altruism, where the purchase reflects concerns for sustainable development, or by self-interest, where the purchase reflects concerns for health and/or product quality. The altruistic motivation can be analysed by looking at the purchase of “Fair Trade” products, whereas the latter two motivations can respectively be analysed by examining the purchase of healthy and higher quality labeled products. Our results indicate that buyers of organic products are motivated by altruism. Furthermore, higher education levels promote altruistic motives for this kind of purchase, and have a positive impact on the self-interested motives related to the quality of the product. However, income level and family size do not reinforce the strong complementary relationship that exists between the purchasing of organic and fair trade products.
    Keywords: organic agriculture, consumer’s behavior, discrete choice model
    JEL: C25 D12 Q01
    Date: 2013–01
  3. By: David Gill; John Thanassoulis
    Abstract: In this paper we study price competition between firms when some consumers attempt tobargain while others buy at the public list or posted prices. Even though bargainers succeed innegotiating discounts off the list prices, their presence dampens competitive pressure in the marketby reducing the incentive to undercut a rival’s list price, thus raising all prices and increasingprofits. Welfare falls because of the uncertainty in the bargaining process, which generates somemisallocation of products to consumers. We also find that the bargainers facilitate collusion byreducing the market share that can be gained from a deviation.
    Keywords: Posted prices, list prices, collusion, bargaining, negotiation, haggling, discounts, outside option, price takers, Hotelling line
    JEL: C78 D43 L13
    Date: 2013–01–14
  4. By: Le Borgne, G.; Sirieix, L.
    Abstract: This study aims at analyzing the role of wastage as a possible consequence of promotional offers and as a cause of skepticism towards these offers. After having presented a literature review of the effect of promotions on purchase, consumption, and non-consumption of food products by the consumer and, shown the link between promotions and food wastage, we propose a conceptual framework which integrates food wastage as a risk perceived by the consumer and as a cause of skepticism towards promotions, to, finally, describe research orientations arising from this. ...French Abstract : Cette étude vise à analyser la place du gaspillage, comme conséquence possible des promotions et comme cause de scepticisme face à ces offres. Après avoir présenté une revue des travaux existants sur l’effet des offres promotionnelles sur l’achat, la consommation, et la non-consommation des produits alimentaires par le consommateur, et montré le lien entre promotions et gaspillage alimentaire, nous proposons un cadre conceptuel intégrant le gaspillage alimentaire comme risque perçu par le consommateur, et comme cause de scepticisme face aux promotions, pour enfin décrire les pistes de recherches qui en découlent.
    JEL: M30 M31 M37
    Date: 2013
    Abstract: Traditional CRM models often ignore the correlation that could exist among the purchasing behavior of surrounding prospects. Hence, a generalized linear autologistic regression model can be used to capture this interdependence and improve the predictive performance of the model. In particular, customer acquisition models can benefit from this. These models often suffer from a lack of data quality due to the limited amount of information available about potential new customers. Based on a customer acquisition model of a Japanese automobile brand, this study shows that the extra value resulting from incorporating neighborhood effects can vary significantly depending on the granularity level on which the neighborhoods are composed. A model based on a granularity level that is too coarse or too fine will incorporate too much or too little interdependence resulting in a less than optimal predictive improvement. Since neighborhood effects can have several sources (i.e. social influence, homophily and exogeneous shocks), this study suggests that the autocorrelation can be divided into several parts, each optimally measured at a different level of granularity. Therefore, a model is introduced that simultaneously incorporates multiple levels of granularity resulting in even more accurate predictions. Further, the effect of the sample size is examined. This showed that including spatial interdependence using finer levels of granularity is only useful when enough data is available to construct reliable spatial lag effects. As a result, extending a spatial model with multiple granularity levels becomes increasingly valuable when the data sample becomes larger.
    Keywords: Customer Relationship Management (CRM); Predictive Analytics; Customer Intelligence; Marketing; Data Augmentation; Autoregressive Model; Automobile Industry
    Date: 2012–10

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