nep-mkt New Economics Papers
on Marketing
Issue of 2013‒03‒23
nine papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Consumers recall and recognition for brand symbols By Subhani, Dr. Muhammad Imtiaz; Hasan, Dr. Syed Akif; Osman, Ms. Amber
  2. The Effect of Deceptive Advertising on Consumption of the Advertised Good and its Substitutes: The Case of Over-the-Counter Weight Loss Products By Cawley, John; Avery, Rosemary; Eisenberg, Matthew
  3. Customer Poaching with Retention Strategies By Rosa Branca Esteves
  4. Regulation of Pharmaceutical Prices: Evidence from a Reference Price Reform in Denmark By Kaiser, Ulrich; Méndez, Susan J.; Rønde, Thomas; Ullrich, Hannes
  5. Construcción y validación inicial de una escala para medir la personalidad de los establecimientos comerciales By Gemma García Ferrer; Carmen García García
  6. Market Structure and Cost Pass-Through in Retail By Gee Hee Hong; Nicholas Li
  7. Introduction of New Food Products With Voluntary Health- and Nutrition-Related Claims, 1989-2010 By Martinez, Stephen W.
  8. Determinants of Generic vs. Brand Drug Choice: Evidence from Population-wide Danish Data By Niels Skipper; Rune Vejlin
  9. Todos los compradores Online de billetes de transporte no son iguales By Jana Prodanova; Sonia San Martín Gutiérrez

  1. By: Subhani, Dr. Muhammad Imtiaz; Hasan, Dr. Syed Akif; Osman, Ms. Amber
    Abstract: Brand Symbols are important for any brand in helping consumers to remember one’s brand at the point of purchase. In advertising different ways are used to grab attention in consumers’ mind and majorly it’s through brand recall and recognition. This research captivates the Brand Symbol concept and determines whether symbols play an important role in creating a differential impact with other brands. Secondly, it also answers that whether brand symbol is the cause of creating positive association and familiarity with the brand. Brand power has prevailed in Pakistan for years now and brand competition is extremely strong in here. As one talks about brands then one has to create a mark able difference in wanting consumers’ attention to purchase. This research is an intriguing answer to brand managers/marketers about the use of brand symbols in their new or existing brands. Questionnaire (18 International brands questions were asked to recall and recognize) was used gather the data from an un-restricted random sampling of 250 consumers using different brands every now and then in Karachi. Gender, age and education are the prime factors in judging the remembrance (recall) and identification (recognition) of the brand symbols. Recall and Recognitions of brand symbols in selection of a brand was tested by applying multiple linear regressions (OLS model). It was found that gender does not play a significant role in the association of recall of brand symbols but gender has an association with brand symbol recognition. For the recall of brand symbols, age plays an important and positive role whereas; education has a negative relation with the recall of brand symbols. Recognition of brand symbols is quite weak as no association has been found with education and age.
    Keywords: brand recall, brand recognition, brand symbols, age, gender, education, consumer behavior.
    JEL: M31
    Date: 2012
  2. By: Cawley, John (Cornell University); Avery, Rosemary (Cornell University); Eisenberg, Matthew (Carnegie Mellon University)
    Abstract: This paper is the first to estimate the impact of exposure to deceptive advertising on consumption of the advertised product and its substitutes. We study the market for over-the-counter (OTC) weight-loss products, a market in which deceptive advertising is rampant and products are generally ineffective with potentially serious side effects. We control for the targeting of ads using indicator variables for each unique magazine read and television show watched. Our estimates indicate that exposure to deceptive advertising is associated with a lower probability that women, and a higher probability that men, consume OTC weight loss products. We find evidence of spillovers; exposure to deceptive print ads is associated with a higher probability of dieting and exercising for both men and women. We also find evidence that better-educated individuals are more sophisticated consumers of advertising and use it to make more health-promoting decisions.
    Keywords: advertising, weight loss, obesity, deception, information, drugs, health
    JEL: I1 I18 M37 M38 D83
    Date: 2013–02
  3. By: Rosa Branca Esteves (Universidade do Minho - NIPE)
    Abstract: This paper is a first step in investigating the competitive and welfare effects of behaviourbased price discrimination (BBPD) in markets where firms have information to employ retention strategies as an attempt to raise barriers to switching. We focus on retention activity in the form of a discount offered to a consumer expressing an intention to switch. When save activity is allowed forward looking firms anticipate the effect of first period market share on second period profits and so they price more aggressively in the first-period. Thus, first period equilibrium price with BBPD and save activity is below its non-discrimination counterpart. This contrasts with first period price above the non-discrimination level if BBPD is used and save activity is forbidden. Regarding second period prices, retention discounts increase the price offered to those consumers who do not signal am intention to switch. The reverse happens to those consumer who decide to switch after being exposed to retention offers. As in other models where consumers have stable exogenous brand preferences, the instrument of behaviour based price discrimination is bad for profits and welfare but good for consumers. However, BBPD with the additional tool of retention activity boosts consumer surplus and overall welfare but decreases industry profit.
    Date: 2013
  4. By: Kaiser, Ulrich (University of Zurich); Méndez, Susan J. (University of Zurich); Rønde, Thomas (Copenhagen Business School); Ullrich, Hannes (University of Zurich)
    Abstract: Reference prices constitute a main determinant of patient health care reimbursement in many countries. We study the effects of a change from an "external" (based on a basket of prices in other countries) to an "internal" (based on comparable domestic products) reference price system. We find that while our estimated consumer compensating variation is small, the reform led to substantial reductions in list and reference prices as well as co-payments, and to sizeable decreases in overall producer revenues, health care expenditures, and co-payments. These effects differ markedly between branded drugs, generics, and parallel imports with health care expenditures and producer revenues decreasing and co-payments increasing most for branded drugs. The reform also induced consumers to substitute from branded drugs – for which they have strong preferences – to generics and parallel imports. This substitution also explains the small increase in consumer welfare despite a substantial decrease in expenditures.
    Keywords: pharmaceutical markets, regulation, co-payments, reference pricing, welfare effects
    JEL: I18 C23
    Date: 2013–02
  5. By: Gemma García Ferrer; Carmen García García
    Abstract: La personalidad de tienda es importante para seleccionar la mejor estrategia de marketing. El papel estratégico de estas características simbólicas, rasgos humanos, que pueden ser atribuidas a las tiendas ha quedado empíricamente demostrado en lo que se refiere a satisfacción percibida de los clientes (Chun y Davies, 2006), así como al comportamiento leal hacia el establecimiento (Zentes, Morschett y Schramm-Klein, 2008). A pesar de la reconocida relevancia del problema, actualmente no disponemos de un instrumento para medir este constructo. Este trabajo describe la investigación inicial llevada a cabo para desarrollar una escala para medir la personalidad de los establecimientos comerciales.
    Keywords: Personalidad de tiendas; Estrategia de marketing; Satisfacción percibida de los clientes; Comportamiento leal hacia el establecimiento; Desarrollo de una escala
    JEL: M31
    Date: 2013–03
  6. By: Gee Hee Hong; Nicholas Li
    Abstract: We examine the extent to which vertical and horizontal market structure can together explain incomplete retail pass-through. To answer this question, we use scanner data from a large U.S. retailer to estimate product level pass-through for three different vertical structures: national brands, private label goods not manufactured by the retailer and private label goods manufactured by the retailer. Our findings emphasize that accounting for the interaction of vertical and horizontal structure is important in understanding how market structure affects pass-through, as a reduction in double-marginalization can raise pass-through directly but can also reduce it indirectly by increasing market share.
    Keywords: Inflation and prices, Transmission of monetary policy
    JEL: E30 E31 L11 L16
    Date: 2013
  7. By: Martinez, Stephen W.
    Abstract: This study tracks food products introduced from 1989 to 2010 to better understand the adoption of voluntary health- and nutrition-related claims by companies. New food products introduced with health- and nutrition-related claims accounted for 43.1 percent of all new U.S. food product introductions in 2010, up from 25.2 percent in 2001 and 34.6 percent in 1989. The reduction in health- and nutrition-related claims from 1989 to 2001 followed enactment of the Nutrition Labeling and Education Act of 1990 (NLEA). The NLEA required most food products to carry the Nutrition Facts label and established labeling rules for the use of voluntary nutrient content and health claims. Overall growth in health- and nutrition-related claims after 2001 reflect increases in low/no calorie, whole grain, high fiber, and low/no sugar claims, along with relatively new claims related to no gluten, no trans fats, antioxidants, and omega-3. This period was characterized by nutrition information and education campaigns targeting obesity. Recent increases in healthand nutrition-related claim use also reflect evolving consumer needs and preferences for foods that promote a healthy lifestyle and disease-fighting capabilities, and new labeling regulations directed at trans fats.
    Keywords: nutrient content claims, health claims, new products, food labeling regulations, nutrition information, dietary recommendations, functional foods, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety,
    Date: 2013–02
  8. By: Niels Skipper (Department of Economics and Business, Aarhus University); Rune Vejlin (Department of Economics and Business, Aarhus University)
    Abstract: When prescription medications go off patent, vastly cheaper generic drugs usually enters the market. However, the original brand medication often maintains non-negligible market shares. This paper investigates whether demand for branded medications in post-patent markets is patient- or doctor driven. We use population-wide Danish register data including all prescriptions for seven blockbuster drugs from 1998-2008. At the outset, descriptive statistics suggest large variation in drug choice over doctors. Nonetheless, using a two-way fixed effects model we find that the primary determinants of brand drug use are unobserved patient characteristics and price effects, while observed and unobserved doctor characteristics in general explain only 0.7 % of the variation in drug choice. This is suggestive evidence that the doctors in the Danish setting with no incentives to push expensive brand drugs do indeed not do so. Our results also suggest that one should be careful when applying fixed effects in small samples.
    Keywords: Prescription drug demand, fixed effects, brand preferences
    JEL: I11 L65
    Date: 2013–03–14
  9. By: Jana Prodanova; Sonia San Martín Gutiérrez
    Abstract: Aunque Internet resulta necesario para numerosas tareas, para empresas e individuos, cada consumidor tiene preferencias distintas y considera distintos factores que influyen en su decisión de compra online. Presentamos una tipología de compradores online de billetes de transporte a partir de 200 encuestas. Consideramos que este trabajo es pionero en el campo del e-commerce por delinear 3 grupos de compradores (relexivos, prácticos y escépticos), en función de la confianza en los sitios web de venta de billetes de transporte, las características intrínsecas, extrínsecas y relacionales de estos sitios, la personalidad de los compradores y otros elementos, como colores y emociones. Exponemos información interesante, tanto para el mundo académico, como para la gestión.
    Keywords: Comercio electrónico, personalidad, confianza, características Web, emociones, tipología
    JEL: M31 M37
    Date: 2013–03

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