nep-mkt New Economics Papers
on Marketing
Issue of 2013‒07‒05
nine papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Better communication for successful food technology development: A Delphi study By Ragona, M.; Raley, M.; Sijtsema, S.J.; Frewer, L.J.
  2. Consumer Attitudes, Labeling Regimes and the Market Success of Food Nanotechnology By Tran, Van T.; Yiannaka, Amalia; Giannakas, Konstantinos
  3. Nutrition Label Usage, Diet Health Behavior, and Information Uncertainty By Schroeter, Christiane; Anders, Sven
  4. "Local is the New Organic": Do Consumers Agree? By Meas, Thong; Hu, Wuyang; Batte, Marvin T.; Woods, Timothy; Ernst, Stan
  5. Analysis of Consumer Preferences and Willingness-to-Pay for Organic Food Products in Germany By Illichmann, Rebecca; Abdulai, Awudu
  6. Multichannel Spillovers from a Factory Store By Yi Qian; Eric Anderson; Duncan Simester
  7. Independent service operators in ATM markets By Wenzel, Tobias
  8. Competition between Private Label and National Brand for Health-differentiated Food Product: A Canadian Retailing Case By Ying, Xiongwei; Anders, Sven M.
  9. Implications of Heterogeneous Producer Incentives for Marketing Order Continuation By Plakias, Zoë T.; Goodhue, Rachel E.

  1. By: Ragona, M.; Raley, M.; Sijtsema, S.J.; Frewer, L.J.
    Abstract: Despite developments in technology, design and marketing, many new food products are not successfully commercialised. Communication between key players with different expertise (food technologists, consumers scientists, end consumers, etc.) seems crucial to improve food technology development, respond better to consumer wishes and reduce innovation failures. In this study, preliminary results of a Delphi survey aiming to identify opinions and priorities of various key players regarding the elaboration of an effective communication strategy during food product development are presented. Survey participants were recruited from an ad-hoc online community and personal contacts from different areas of expertise and sectors. Results revealed that disciplinary differences constitute an important barrier to such communication, and these may relate to both theoretical and linguistic differences between communities. Inadequate communication between consumer scientists and food technologists is commonly (but not unanimously) regarded as a barrier to inclusion of consumer science data into product development. The problems include insufficient, ineffective and excessively late engagement and also non-engagement between actors. Some clear gaps between the perceptions of consumer scientists and food technologists exist, for example consumer scientists were more likely to agree that food technologists find it difficult to interpret consumer information, whereas food technologists were more likely to agree that consumer information is not specific enough for them to use. Given those identified barriers, it is important to explicitly recognise inter-disciplinary communication as a success factor in food development projects, with, e.g., the establishment of multi-disciplinary teams, and to improve knowledge and awareness of each other’s subject.
    Keywords: food product development, communication, food technology, consumer science, Delphi, Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing, Teaching/Communication/Extension/Profession, C83, D83, M10, O32, Q16,
    Date: 2013–06
  2. By: Tran, Van T.; Yiannaka, Amalia; Giannakas, Konstantinos
    Abstract: The study explores the market and welfare effects of the introduction of a food nanotechnology innovation under different labeling regimes. An analytical framework of heterogeneous consumers who differ in their attitudes towards interventions in the production process and imperfectly competitive producers is developed to analyze the effects of food nanotechnology under different labeling regimes while considering different consumer preferences for food nanotechnology. Analytical results show that high consumer valuation of the enhanced attributes of nanofoods can lead to consumer acceptance of nanofoods even when consumers are averse to nanotechnology. In most cases, the introduction of food nanotechnology leads to a reduction in the prices and quantities of the existing food alternatives with the price and quantity decreases being greater when nanotechnology adoption costs are low. When this happens, welfare is lower for non-adopting producers and greater for nanofood adopters and for all consumers; consumers who benefit the most from the introduction of food nanotechnology are those who switch their consumption to nanofoods. Finally, labeling regulation has an adverse impact on consumer welfare when consumers are averse to food nanotechnology. Under this case, producers of substitute food products experience welfare gains at the expense of nanofood producers. The results, yet, are intriguingly divergent if consumers have no knowledge of or are indifferent to food nanotechnology in the absence of labeling. Moreover, if consumers perceive food nanotechnology as less invasive than conventional food technology, welfare gains and losses might be realized by different groups of consumers and producers depending on the relative magnitude of the model parameters.
    Keywords: food nanaotechnology, nanofood, heterogeneous consumers, consumer attitudes, consumer and producer welfare, nanofood labeling, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2013
  3. By: Schroeter, Christiane; Anders, Sven
    Abstract: The overarching goal of nutrition labeling is to transform credence attributes into searchable cues, which would enable consumers to make appropriate choices at lower search costs. However, despite an abundance of food labeling information, asymmetries regarding appropriate healthy food choices largely persist. Thus, there is need for research that exposes consumer’s label usage and their level of concern about their health in order to understand the underlying motivations that may explain consumer behavior with regard to labels. In order to better understand how current food-health behavior and related perceptions over potential future health complications are affected by present labeling usage patterns, this study will estimate 1) the impact of nutrition label usage on individual’s perceived diet health concerns using alternative propensity score matching (PSM) techniques; 2) the effect of nutrition label usage on consumer’s stated concerns on (a) diet-health, (b) obesity, and (c) general future wellbeing controlling for a wide variety of socio-demographic variables, food-intake and choice related behaviors, and lifestyles factors; and 3) conduct a series of tests and sensitivity analyses to assure robustness of matching indicators and to validate impacts of treatment effects for label users and non-users. The analysis utilizes data from the 2008 National Health and Wellness Survey conducted by Nielsen Canada. As the results suggest, consumers are not aware or use nutrition labeling information. In order to change dietary behavior, policy makers may need to adopt instruments that account for differences with regard to food preferences, food shopping habits, and overall usage patterns of food/nutrition labeling information.
    Keywords: Socio-economic factors, food labeling, preferences, behavioral factors, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Public Economics, I1, H2,
    Date: 2013
  4. By: Meas, Thong; Hu, Wuyang; Batte, Marvin T.; Woods, Timothy; Ernst, Stan
    Abstract: There have been numerous studies and growing interests to identify consumer preferences and compare willingness-to-pay for different value-added food labels or attributes. This paper uses stated preference data from choice experiments in a mail survey in Kentucky and Ohio to analyze consumer preferences for a host of value-added attributes of processed blackberry jam. Results from the study confirm positive willingness-to-pay for both organic and local attributes as well as other label claims. However, consumers were found to be willing to pay less for organic blackberry jam than jam identified as being produced in smaller state regions. Furthermore, the study found some evidence of substitution between these two attributes, an issue receiving minimal attention in the existing literature.
    Keywords: willingness-to-pay, local and organic processed food products, choice experiment, conditional logit model, Mixed Logit model, processed food labels, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Q13,
    Date: 2013
  5. By: Illichmann, Rebecca; Abdulai, Awudu
    Abstract: This study employs a choice experiment approach to investigate consumers’ preferences and willingness-to-pay (WTP) for organic food products. We use mixed logit and latent class models to examine preference heterogeneity. The results revealed significant heterogeneity in preferences for organic apples, milk, and beef product attributes among consumers. The WTP results obtained from mixed logit indicate gender-specific differences for the examined products of this study. Female respondents have a significant higher WTP for apple attributes, while significant higher WTP values for beef attributes are observed for male respondents. The findings of the latent class models indicate that consumers’ trust tend to influence their preferences for organic food products.
    Keywords: Organic farming, choice experiment, preference heterogeneity, mixed logit, latent class model, Environmental Economics and Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, C25, D12,
    Date: 2013
  6. By: Yi Qian; Eric Anderson; Duncan Simester
    Abstract: We study how the opening of a factory store impacts a retailer’s demand in its other channels. It is possible that a factory store may damage a retailer's brand image and lead to substitution away from its higher quality core channels. Alternatively, the opening of a factory store may have positive effects as it may attract new buyers and serve as a form of brand advertising. In this paper, we use a natural experiment that arises from a retailer introducing a factory store in 2002. We analyze data that spans all customers and all channels from 1995 to 2007. This allows for careful pre and post analysis of the factory store opening. We find that the introduction of the factory store led to substantial positive spillovers to the core channels that lasted for multiple years. Customers purchase more items from the higher priced, higher quality channels after the factory store is opened. These positive spillovers represent approximately 17% of all of the incremental sales that result from the factory store opening (the other 83% are contributed by sales in the factory store itself).
    JEL: L0 M0
    Date: 2013–06
  7. By: Wenzel, Tobias
    Abstract: This paper studies the impact of entry of non-banks (termed Independent Service Operators, ISOs) into ATM markets. We compare two different regimes by which the ISO may generate income: i) The ISO receives interchange fees and ii) the ISO charges consumers directly. We find that due to the entry of an ISO the size of the total ATM network increases independent of the way the ISO is financed. Account fees increase if the ISO receives interchange fees and decrease if the ISO charges consumers directly. Consumers may not benefit from the entry of the ISO. If a regulator can control the interchange fee, entry by an ISO financed through interchange fees increases consumer surplus, while the entry of a surcharging ISO decreases consumer surplus. --
    Keywords: Banking,ATM networks,Investment
    JEL: L11 L13
    Date: 2013
  8. By: Ying, Xiongwei; Anders, Sven M.
    Abstract: Retailers in Canada are beginning to introduce private labels to gain vertical bargaining power over manufacturers and horizontal differentiation among retailers. Product differentiation in health and wellness is an emerging trend for both private labels and national brands. This study applies a model derived from a random utility nested logit model to estimate the extent to which consumer choice of health-related food attributes has affected retailer pricing and brand-level competition, using the Distance-Matrix (DM) approach to identify the location of both private label and national brands of canned soup market in their attribute space. It suggests that private label does not have a positive effect on retailers’ demand.
    Keywords: private label, national brand, health differentiation, distance matrix, nested logit, Food Consumption/Nutrition/Food Safety, Production Economics,
    Date: 2013
  9. By: Plakias, Zoë T.; Goodhue, Rachel E.
    Keywords: Institutional and Behavioral Economics, Marketing, Research Methods/ Statistical Methods,
    Date: 2013

This nep-mkt issue is ©2013 by Joao Carlos Correia Leitao. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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