nep-mkt New Economics Papers
on Marketing
Issue of 2013‒02‒16
eleven papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Chinese Consumer Knowledge, Perception and Willingness to Pay for Orange Juice Products: Any Opportunities for the U.S. Juice Producers? By Chen, Xuqi; Gao, Zhifeng
  2. Assessing Consumer Willingness to Pay for Ground Bison Given Nutrition Information By Yang, Shang-Ho; Woods, Timothy A.
  3. A conceptual model for the use of social media in companies By Nistor, Cristian
  4. Who Buys Food Directly from Producers in the Southeastern United States? By Maples, McKenzie; Morgan, Kimberly L.; Interis, Matthew G.; Harri, Ardian
  5. Pay What You Want – But Pay Enough! Information Asymmetries and PWYW-Pricing By Matthias Greiff; Henrik Egbert; Kreshnik Xhangolli
  6. Farm Market Patron Behavioral Response to Food Sampling By Yang, Shang-Ho; Woods, Timothy A.
  7. Fresh Vegetable Growers' Risk Perception, Risk Preference and Choice of Marketing Contracts: A Choice Experiment By Vassalos, Michael; Hu, Wuyang; Woods, Timothy A.; Schieffer, Jack; Dillon, Carl R.
  8. Knowing where organic markets move next: An analysis of developing countries in the pineapple market By Kleemann, Linda
  9. Untangling Searchable and Experiential Quality Responses to Counterfeits By Yi Qian; Qiang Gong; Yuxin Chen
  10. A Split-Sample Revealed and Stated Preference Demand Model to Examine Homogenous Subgroup Consumer Behavior Responses to Information and Food Safety Technology Treatments. By John C. Whitehead; O. Ashton Morgan; William L. Huth; Gregory S. Martin; Richard Sjolander
  11. Producer Willingness to Pay for the Services Provided by an Electronic Trade Platform: The Case of MarketMaker By Zapata, Samuel D.; Carpio, Carlos E.; Isengildina-Massa, Olga; Lamie, R. David

  1. By: Chen, Xuqi; Gao, Zhifeng
    Abstract: Surveys were conducted in four cities in China to study Chinese consumers’ knowledge, perception and willingness to pay for different type of orange juice products. Results show that consumers were willing to pay for healthier orange juice produce with high percentage of juice contents.
    Keywords: China, Consumer, Orange juice, Preference, Willingness to pay, Agribusiness, Marketing,
    Date: 2013–02–03
  2. By: Yang, Shang-Ho; Woods, Timothy A.
    Abstract: According to the USDA National Nutrient Database for bison, the bison nutrient benefits include higher protein level, lower calories, lower fat, and lower cholesterol compared to various commercial meats, like skinless-chicken, beef, pork, lamb, and salmon. This study investigates how consumers evaluate fresh ground bison in terms of their willingness to pay. Results show that the variation of consumer knowledge on bison nutrition contributes to different levels of willingness to pay. Implications from this study suggest enhancing consumers’ knowledge of bison products would increase the sale of bison products.
    Keywords: bison, nutrition, WTP, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing, Q13,
    Date: 2013–02
  3. By: Nistor, Cristian
    Abstract: Social media is currently an evolving “wave” in online business marketing. Marketers are beginning to drive the use of social media as a component in their marketing strategy and campaigns to reach out to customers and fans. Within the subdisciplines of marketing that may use social media include promotions, marketing intelligence, sentiments research, public relations, marketing communications and product and customer management. This paper will try to find a conceptual model to examine people’s behavior, model based on the Theory of Reason Action (TRA) and the Technology Acceptance Model (TAM).
    Keywords: Social media; Social networks; Social influence; Technology acceptance model; perceived ease of use; perceived usefulness
    JEL: C51 A13 A14
    Date: 2013–01–04
  4. By: Maples, McKenzie; Morgan, Kimberly L.; Interis, Matthew G.; Harri, Ardian
    Abstract: In order to capitalize on potential opportunities to meet market demand for locally-grown foods, farmers need insight into significant motivations and behavioral characteristics of those consumers who have purchased local foods. Furthermore, it is evident that some consumers buy directly from producers based on their desire for “local” food (Thilmany, Bond, and Bond 2008). Local food consumer preferences and motivations potentially differ across regions of the United States and across varying definitions of “local” food. Little research has been done on the local foods sector for the Southeastern United States. Most studies concentrate on the Eastern coast or the Western region of the United States (e.g. Giruad et al, 2005; Hardesty, 2008; Thilmanny et al, 2008) or would benefit from updated analyses (Eastwood et al, 1987). There are 12,549 community supported agriculture programs in the US, of which 4,015 (32%) are located in the Southeastern region (U.S. Department of Agriculture, 2007), an indication of consumer support for producer-sourced food and food products. This paper aims to fill this gap in the literature by evaluating the characteristics of Southeastern urban consumers who purchased food directly from producers. The results of our study are based on an online survey of 1,023 primary household food shoppers who reside in five major cities in the southeast US (Atlanta GA, Nashville TN, Birmingham AL, and Houston and Austin TX). Novel study findings include the impact of disease incidences among respondent and related family members, a more accurate respondent understanding of the agriculture industry, and higher physical activity levels, all of which are significantly linked to increased likelihood to purchase direct from producers. Significant differences in respondent purchasing behavior were exhibited between cities, as well as relatively higher levels of respondent concern about the safety of U.S. grown food and food products. Female respondents with some college education who prepare more meals at home each week were statistically more likely to have purchased direct-from-producers within the previous six months (January through June, 2012), findings that are consistent with the existing literature. The results of this study are expected to assist growers located in the Southeast who are interested in securing and nurturing sustainable, producer-to-consumer relationships. Extension specialists can share survey findings by delivering producer educational programs built on informed, targeted marketing strategies that effectively meet the needs of the locally grown consumer base.
    Keywords: Locally grown, Southeast, direct marketing, logit, consumer survey research, healthy eating habits, disease, Agribusiness, Food Consumption/Nutrition/Food Safety,
    Date: 2013
  5. By: Matthias Greiff (University of Giessen); Henrik Egbert (University of Applied Science); Kreshnik Xhangolli (University of Applied Science)
    Abstract: Pay What You Want (PWYW) pricing has received considerable attention recently. Empirical studies show that if PWYW pricing is implemented, in a number of cases consumers do not behave selfishly and that some producers are able to use PWYW for increasing turnover and profits respectively. In this paper we add information asymmetries to the existing explanations regarding consumer behavior and argue that information asymmetries may account for the results found in empirical studies. Since the success of PWYW pricing depends on the distribution of information, one implication is that optimization strategies with respect to pricing should take information asymmetries into account.
    Date: 2013
  6. By: Yang, Shang-Ho; Woods, Timothy A.
    Abstract: Farm market patron responses to food sampling indicate that this experience created significant purchasing impacts at the point of sale. After food sampling, over half respondents made a purchase that hadn’t planned to that day. Sampling response is further examined by market setting and within various consumer segments.
    Keywords: consumer behavior, farm market, food sampling, Community/Rural/Urban Development, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing, Q13, Q18,
    Date: 2013–02
  7. By: Vassalos, Michael; Hu, Wuyang; Woods, Timothy A.; Schieffer, Jack; Dillon, Carl R.
    Abstract: Growers’ preferences for a number of marketing contract attributes as well as the effect of growers’ risk perception and risk preferences on the choice of marketing contracts were examined with the use of a choice experiment. The main data source for the study is a mail survey administrated to 315 wholesale tomato growers. The findings validate the transaction cost hypothesis and indicate heterogeneity in preferences. Risk perception and risk preferences had limited impact on contract choice.
    Keywords: Marketing Contracts, transaction costs, choice of contracts, choice experiment, Agribusiness, Farm Management, Marketing, Q12, Q13,
    Date: 2013–01–10
  8. By: Kleemann, Linda
    Abstract: As consumers' demand for organic products grows, selling organic products potentially opens up profitable market participation options for farmers in developing countries. This paper studies two aspects of profitability for the producers. It uses hedonic demand theory and empirical analysis to examine the relation between conventional and organic markets using the strongly growing pineapple market as an example. This analysis confirms a nonlinear dependence of the organic market on the conventional one and a non-declining premium. The author concludes that there is a larger potential of the organic market and hence the number of farmers in developing countries who can potentially benefit from growing organic products. --
    Keywords: Price transmission,private voluntary standards,organic agriculture,organic markets
    JEL: Q17 O13 L11 Q13
    Date: 2013
  9. By: Yi Qian; Qiang Gong; Yuxin Chen
    Abstract: In this paper, we untangle the searchable and experiential dimensions of quality responses to entry by counterfeiters in emerging markets with weak intellectual property rights. Our theoretical framework analyzes the market equilibria under competition with non-deceptive counterfeiting and deceptive counterfeiting, respectively, as well as under monopoly branding. A key theoretical prediction is that emerging markets can be self-corrective with respect to counterfeiting issues in the following sense: First, counterfeiters could earn positive profits by pooling with authentic brands only when consumers have good faith in the market (believe in a low probability that any product is a counterfeit). When the proportion of counterfeits in the market exceeds a cutoff value, brands would invest in self-differentiation from the competitive fringe counterfeiters. Second, to attain a separating equilibrium with counterfeiters, branded incumbents upgrade the searchable quality (e.g. appearance) of their products more and improve the experiential quality (e.g. functionality) less, as compared to monopoly equilibrium. This prediction uncovers the nature of product differentiation in the searchable dimension and helps in analyzing the real-world innovation strategies employed by authentic firms in response to entries by counterfeit entities. In addition, the welfare analyses hint at a non-linear relationship between social welfare and intellectual property enforcement.
    JEL: K42 O31 O34
    Date: 2013–02
  10. By: John C. Whitehead; O. Ashton Morgan; William L. Huth; Gregory S. Martin; Richard Sjolander
    Abstract: The combination and joint estimation of revealed and stated preference (RP/SP) data approach to examining consumer preferences to relevant policy-based measures typically fail to account for heterogeneity in the data by considering behavior of the average individual. However, in policy-based analyses, where the research is often driven by understanding how different individuals react to different or similar scenarios, a preferred approach would be to analyze preferences of homogenous population subgroups. We accomplish this by developing a split-sample RP/SP analysis that examines whether homogenous subgroups of the population, based on individual health and behavioral characteristics, respond differently to health-risk information and new food safety technology. The ongoing efforts by the U.S. Food and Drug Administration (FDA) to reduce illness and death associated with consuming raw Gulf of Mexico oysters provide an ideal platform for the analysis as the health risks only relate to a very specific consumer subgroup. Results from split-sample demand models indicate that educational information treatments cause vulnerable at-risk consumers to reduce their oyster demand, implying that a more structured approach to disseminating the brochures to the at-risk population could have the desired result of reducing annual illness levels. Also, findings across all subgroups provide strong empirical evidence that the new FDA policy requiring processing technology to be used in oyster production will have a detrimental effect on the oyster industry. Key Words: Food safety technology; health-risk information; homogenous subgroups; revealed preference; stated preference
    Date: 2013
  11. By: Zapata, Samuel D.; Carpio, Carlos E.; Isengildina-Massa, Olga; Lamie, R. David
    Abstract: This study assesses the economic impact of the Electronic Trade Platform MarketMaker on agricultural producers. Results obtained using contingent valuation techniques indicate that producers are willing to pay $47.02 annually for the services they receive from the platform. Producers’ characteristics such as registration type and annual sales have a significant effect on producers’ willingness to pay.
    Keywords: e-commerce, contingent valuation, Agribusiness,
    Date: 2013–02

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