nep-mkt New Economics Papers
on Marketing
Issue of 2013‒11‒22
six papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior and Universidade de Lisboa

  1. Modeling Preference Change through Brand Satiation By Nobuhiko Terui; Shohei Hasegawa
  2. Making Nutritional Information Digestible: Effects of a Receipt-Based Intervention on Restaurant Purchases By Kelly Bedard; Peter J. Kuhn
  3. Situated embodied cognition: Monitoring orientation cues affects product evaluation and choice. By Eelen, Jiska; Dewitte, Siegfried; Warlop, Luk
  4. The Consumer Price Index: Recent Developments By Diewert, Erwin
  5. Close encounter with the hard discounter: A multiple-store shopping perspective on the impact of local hard-discounter entry. By Vroegrijk, Mark; Gijsbrechts, Els; Campo, Katia
  6. The Informational and signaling impacts of labels: Experimental evidence from India on GM foods By Bharat Ramaswami; Sangeeta Bansal; Sujoy Chakravarty

  1. By: Nobuhiko Terui; Shohei Hasegawa
    Abstract: In this study, we develop structural models of preference change due to consumer state dependence through satiation by purchase experience. A dynamic factor model with switching structure is proposed to explain consumer preference changes. Two types of dynamic factor models are separately applied to baseline and satiation parameters in a direct utility model that accommodates multiple discreteness data. The first dynamic factor model has a switching structure for consumer preference, and decomposes brand baselines into time-invariant factor loadings for the coordinates of brand positions and time-varying factor scores for consumer preference directions. The second dynamic factor model applied to satiation parameters extracts the consumer level of satiation in a product category, and this is used as a causal variable in a switching equation to show when and how preferences change over time according to the level of brand satiation. The brand positions and temporal changes of heterogeneous preferences are jointly depicted in a dynamic joint space map. The empirical analysis of a panel dataset shows that our proposed dynamic model, implying that consumers change their preferences when previous brand satiation exceeds the admissible level and preference directions are determined by the previous level of satiation, performs better than alternative specifications, such as a static model with no preference change and a dynamic model without structures which imply that preference changes whenever a consumer purchases a product.
    Date: 2013–04
  2. By: Kelly Bedard; Peter J. Kuhn
    Abstract: We study the effects of receipts that include personalized ordering suggestions designed to reduce fat and calorie consumption on purchasing behavior at a restaurant chain. We find that customers, in the aggregate, made most of the item substitutions that were encouraged by the messages, such as substituting ham for sausage in a breakfast sandwich, or substituting frozen yogurt for ice cream, though effects on overall calories and fat consumed were small. The results illustrate the potential of emerging information technologies, which allow retailers to tailor product marketing to individual consumers, to contribute in meaningful new ways to the battle against obesity.
    JEL: C33 D03 D12 I12
    Date: 2013–11
  3. By: Eelen, Jiska; Dewitte, Siegfried; Warlop, Luk
    Abstract: Consumers generally prefer products that are easy to interact with. In three studies, we show that this preference arises from the fit between product orientation and monitored situational constraints. Flexible right-handers, who monitor situational constraints, recall product orientations better and prefer products for which the handle is oriented in the direction of the hand used for grasping. When their ability to monitor situational constraints is impaired, the preference for easy-to-grasp products is attenuated. The findings highlight that motor fluency is a relevant cue for decision making when consumers assess how to interact with a product. The implications of these results for embodiment and fluency research are discussed.
    Keywords: embodiment; situated cognition; handedness; processing fluency; product orientation; grasping;
    Date: 2013–06
  4. By: Diewert, Erwin
    Abstract: The 2004 International Labour Office Consumer Price Index Manual: Theory and Practice summarized the state of the art for constructing Consumer Price Indexes (CPIs) at that time. In the intervening decade, there have been some significant new developments which are reviewed in this paper. The CPI Manual recommended the use of chained superlative indexes for a month to month CPI. However, subsequent experience with the use of monthly scanner data has shown that a significant chain drift problem can occur. The paper explains the nature of the problem and reviews possible solutions to overcome the problem. The paper also describes the recently developed Time Dummy Product method for constructing elementary index numbers (indexes at lower levels of aggregation where only price information is available).
    Keywords: Consumer Price Indexes, superlative indexes, chain drift, scanner data, Time Product Dummy method, GEKS method for making international comparisons, R
    JEL: C43 E31
    Date: 2013–10–24
  5. By: Vroegrijk, Mark; Gijsbrechts, Els; Campo, Katia
    Abstract: “Hard-discounters” have become a considerable force within grocery retailing. With rock-bottom prices and minimal assortments, they strongly differ from “large-discounters” like Wal-Mart, and constitute complements rather than substitutes for more traditional supermarkets. Hence, we propose that their impact-of-entry on local incumbents is very different as well. Using a store choice and spending model that explicitly accounts for inter-store synergies and “multiple-store shopping” behavior, we study consumer responses to 194 hard-discounter openings. While we find that hard-discounters, like large-discounters, especially appeal to private label-prone shoppers and lead to sizable incumbent losses, the results confirm that the nature of these losses is strikingly different. First, hard-discounters do not make incumbent chains lose their best customers but, rather, shoppers who already visited other chains alongside the incumbent. Second, we find that chains located in close proximity of new hard-discounters do not suffer more from their entry. Third, losses are lower for upscale chains and incumbents that strongly complement the hard-discounter. Implications for proper response to hard-discounter entry are discussed.
    Keywords: grocery retailing; hard-discounters; multiple-store shopping; store entry;
    Date: 2013–10
  6. By: Bharat Ramaswami (Indian Statistical Institute, New Delhi); Sangeeta Bansal (Centre for International Trade and Development, JNU, New Delhi); Sujoy Chakravarty (Centre for Economic Studies and Planning, JNU, New Delhi)
    Abstract: Much of the debate between the European and U.S. positions about labeling of genetically modified foods has been whether consumers perceive labels as a source of information or a signal to change behavior. In this paper, we provide an experimental framework for examining these roles of information and signaling. While previous studies have focused on the impact of labels on consumer behavior, our interest is also what happens prior to the expression of aversion to GM-labeled foods. In particular, the experiment design allows the researcher to estimate a lower bound of the informational impact of labels on GM food aversion. The other novel feature of this paper is that unlike earlier studies, it uses subjects from a developing country.
    Keywords: Genetically modified foods; experimental methods; informational impact of labels; signaling impact of labels
    JEL: C9 Q13 Q16 Q18 L15
    Date: 2013–01

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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.