nep-mkt New Economics Papers
on Marketing
Issue of 2013‒06‒16
five papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Joint optimization of new production, warranty servicing strategy and secondary market supply under consumer returns By Marc Reimann; Weihua Zhang
  2. Brand Capital and Firm Value By Belo, Frederico; Lin, Xiaoji; Vitorino, Maria Ana
  3. Window shopping By Oz Shy
  4. The confounding effects of consumer heterogeneity on model-based inference of attribute non-attendance. By Hong il Yoo
  5. La responsabilité sociale et environnementale des entreprises : mirage ou virage ? By Patricia Crifo; Vanina Forget

  1. By: Marc Reimann (Institute of Production and Operations Management, Karl-Franzens-University Graz); Weihua Zhang (School of Economics and Management, Beihang University, Beijing)
    Abstract: In this paper, we consider an OEM selling new products to the market offering (i) a warranty period during which defective units are dealt with at no cost for the customer, and (ii) a full refund to customers who return products that do not meet their expectations (consumer returns). The manufacturer has different options for satisfying the warranty cases as well as for utilizing the consumer returns. Warranty cases could be dealt with by repairing the defective units, replacing them with new products, or replacing them with refurbished consumer returns. Alternatively leftover new products or consumer returns can also be sold on a secondary market. We develop a model and derive the OEMs optimal decisions with respect to these options under demand uncertainty on the primary market.
    Date: 2013–03–02
  2. By: Belo, Frederico (University of MN); Lin, Xiaoji (OH State University); Vitorino, Maria Ana (University of MN)
    Abstract: We study the role of brand capital--a primary form of intangible capital--for firm valuation and risk in the cross section of publicly traded firms. Using a novel empirical measure of brand capital stock constructed from advertising expenditures accounting data, we show that: (i) firms with low brand capital investment rates have higher average stock returns than firms with high brand capital investment rates, a difference of 5.2% per annum; (ii) more brand capital intensive firms have higher average stock returns than less brand capital intensive firms, a difference of 5.1% per annum; and (iii) investment in both brand capital and physical capital is volatile and procyclical. A neoclassical investment-based model in which brand capital is a factor of production subject to adjustment costs matches the data well. The model also provides a novel explanation for the empirical links between advertising expenditures and stock returns around seasoned equity offerings (SEO) documented in previous studies.
    JEL: E32 G12
    Date: 2013–03
  3. By: Oz Shy
    Abstract: The terms "window shopping" and "showrooming" refer to the activity in which potential buyers visit a brick-and-mortar store to examine a product but end up either not buying it or buying the product from an online retailer. This paper analyzes potential buyers who differ in their preference for after-sale service that is not offered by online retailers. For some buyers, making a trip to the brick-and-mortar store is costly; however, going to the store to examine the product has the advantage of mitigating the uncertainty as to whether the product will suit the buyer's needs. The model shows that the number of buyers engaged in window shopping behavior exceeds the optimal number, both under duopoly and under joint ownership of the online and walk-in store outlets.
    Keywords: Consumer behavior
    Date: 2013
  4. By: Hong il Yoo (University of New South Wales)
    Abstract: Several empirical studies conclude that a majority of economic agents ignore some of observed product attributes when choosing among discrete alternatives. Many of these ndings are based on latent class logit with partially constrained support points wherein the share of each point is interpreted as the probability of ignoring particular attribute(s). We note that because the logit kernel is mixed over these points to approximate unmodeled interpersonal taste variation during the estimation stage, the interpretation of estimated shares is necessarily ambiguous. Using simulated examples, we explain why common forms of unobserved consumer heterogeneity can be confounded with attribute non-attendance.
    Keywords: attribute non-attendance, gmnl, latent class, consumer heterogeneity, mixed logit, information processing rule
    JEL: C25 C52 C81
    Date: 2012–11
  5. By: Patricia Crifo (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, UP10 - Université Paris 10, Paris Ouest Nanterre La Défense - Université Paris X - Paris Ouest Nanterre La Défense - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique, CIRANO - Centre interuniversitaire de recherche en analyse des organisations - Université du Québec à Montréal); Vanina Forget (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)
    Abstract: Cet article examine les déterminants économiques des pratiques de responsabilité sociale et environnementale des entreprises (RSE), à savoir l'intégration volontaire de facteurs environnementaux, sociaux et de gouvernance dans la stratégie des entreprises. Nous présentons la littérature théorique et empirique dans un cadre unifié qui explique le développement de ces pratiques de RSE en se fondant sur trois catégories d'imperfections de marché : l'existence d'externalités et biens publics ; la concurrence imparfaite et enfin les contrats incomplets. Nous examinons également l'impact de la RSE sur la performance et le bien-être social et dégageons des pistes de recherche futures.
    Date: 2013–06–05

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