nep-mkt New Economics Papers
on Marketing
Issue of 2013‒12‒20
seven papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior and Universidade de Lisboa

  1. Mobile application value for consumers By Christine Gonzalez; Élodie Huré
  2. Competitive Market Segmentation By Silvio Sticher
  3. Basic Characteristics of the Raspberry Marketing Chain and Position of the Small Farmers in Serbia By Zaric, Vlade; Vasiljevic, Zorica; Vlahovic, Branislav; Andric, Jasmina
  4. Consumer choice of electricity supplier: Investigating preferences for attributes of electricity services. By Ndebele, T.; Marsh, D.
  5. The Influence of Visitors’ Satisfaction on Expenditure Behaviour By Marta Disegna; Linda Osti
  6. The Impact of the Agricultural Trade Liberalization on the Elements of the Marketing Mix of Fruit and Vegetables in BIH By Dončić, Dalibor; Nastić, Rade
  7. Volatile World Milk Prices and Its Affect to National Market- Case of Serbian Milk Market By Popović, Rade; Radovanov, Boris; Jeremić, Marija

  1. By: Christine Gonzalez (Université de Montpellier 2, Montpellier Recherche en Management, France); Élodie Huré (ESC Rennes School of Business, France Author-Name : Karine Picot-Coupey Author-Workplace-Name : University of Rennes 1 (IGR-IAE), CREM UMR CNRS 6211, France)
    Abstract: A mobile application is an additional touchpoint that could enrich the relationship between consumers and retailers, if these latter understand how a mobile application usage is valued by the formers. This study aims to investigate the consumer value of mobile applications. It builds upon the literature on mobile services value and derives empirical findings from 30 semi-structured interviews of smartphone users, analysed with a content analysis assisted with the NVivo software. Grounded in a hierarchical multidimensional structure, the results indicate that the highest-order value of a mobile application is a synchronicity value enabling the consumer to get at the right time, the right place and in the right situation the right mix of value dimensions among the four following dimensions: situational, utilitarian, hedonic and social value. The results also show four outcomes of this consumer value of a mobile application: attitude toward the brand, omnichannel behaviour, word-of-mouth, future use of the application.
    Keywords: consumer value, shopping experience, mobile applications
    Date: 2013–12
  2. By: Silvio Sticher
    Abstract: In a two-firm model where each firm sells a high-quality and a low-quality version of a product, customers differ with respect to their brand preferences and their attitudes towards quality. We show that the standard result of quality-independent markups crucially depends on the assumption that the customers' valuation of quality is identical across firms. Once we relax this assumption, competition across qualities leads to second-degree price discrimination. We find that markups on low-quality products are higher if consuming a low-quality product involves a firm-specific disutility. Likewise, markups on high-quality products are higher if consuming a high-quality product creates a firm-specific surplus.
    Keywords: price differentiation; vertical competition
    JEL: D43 L13 L15
    Date: 2013–12
  3. By: Zaric, Vlade; Vasiljevic, Zorica; Vlahovic, Branislav; Andric, Jasmina
    Abstract: The raspberry is one of the most important export products of Serbia. According to FAO data about 80,000 tons of raspberry are exported annually from Serbia with a total value of 165 million USD (2011). That is why the Republic of Serbia is one of the major exporters of this product. Raspberries are mainly exported in the frozen form. The raspberry are mainly grown on small farms, where the farm owners and their families carry out all necessary activities, with the seasonal labor hiring during harvest of raspberries. Positive trends in production are both the result of favorable climate conditions and the knowledge and skills of producers. The increasing demands of customers in terms of product safety, recently led to the development of quality systems that are mainly related to the processing of the products. However, the increased liberalization of international trade and increased risks in the area of food safety stress more attention to the health and safety of the products in primary production as well. It is expected that the primary producers with introducing a quality system achieve better position in the marketing chain. This paper aims to analyze the main characteristics of the raspberry marketing chain and position of small producers from two perspectives - the first one is position of the participants at the beginning of the marketing chain, and the second one is the assessment of the effects of introduction the quality system on the volume of production and sales, as well as on the selling price. The research shows that the marketing chain of primary producers is short, and ends by the nearest cool storage. Introduction of quality systems create additional cost for producers and increased product quality. However, data do not show that higher quality standards are reflected in higher market prices.
    Keywords: marketing chain, raspberryes, small producers, Agribusiness, Crop Production/Industries, Marketing,
    Date: 2013–08
  4. By: Ndebele, T.; Marsh, D.
    Abstract: The retail electricity market in New Zealand is evolving as the government continues to promote the development of a competitive and efficient market. Encouraging consumer switching through the “What’s My Number” campaign is expected to put pressure on electricity retailers to reduce prices. Recent reports indicate that relatively few customers have switched supplier in the past two years despite potential average savings of NZ$165 per year per household. This suggests that non-price factors are also important determinants of switching behavior. We use choice experiments to investigate residential consumers’ preferences for the attributes of electricity suppliers and the possible role of attitudes in explaining preference heterogeneity among the sampled respondents. Data required for the study was collected through a web survey administered to an online panel of bill payers in New Zealand. Willingness to pay (WTP) is estimated for attributes of electricity suppliers such as renewable portfolio, local ownership, discount rates, fixed rate plan, loyalty rewards and supplier type. WTP estimates indicate the importance of the attributes and hence provide guidance to suppliers in designing their price and service offers. Knowledge of how attitudes influence switching behavior may inform future policy directed at stimulating competition in the retail market.
    Keywords: electricity suppliers, environmental attitude, choice experiments, latent class model, willingness to pay, Consumer/Household Economics, Demand and Price Analysis, Financial Economics, Resource /Energy Economics and Policy,
    Date: 2013–08
  5. By: Marta Disegna (Free University of Bozen-Bolzano, School of Economics and Management, Italy.); Linda Osti (Free University of Bozen-Bolzano, School of Economics and Management, Italy.)
    Abstract: This study analyses spending behaviour of international visitors to Italy. In specific it focuses on the impact that visitors’ satisfaction with different attributes of the trip exerts on expenditure among different service categories. Despite a general recognition by the economic literature that customer satisfaction exerts a positive effect on both economic returns and brand loyalty, very few academic studies explored the relationship between tourists’ satisfaction with a destination and spending behaviour. This study focuses on the 1,030 visitors who travelled to the provinces Bolzano, Trento, and Belluno (Northern Italy), an area around the Dolomites. The Double-hurdle model with the Heien and Wessells estimator is applied. Discussion of the empirical evidence is aimed at highlighting the main relations between expenditure behaviour and satisfaction. Policy implications and managerial issues for tourism destinations are also presented.
    Keywords: Tourist expenditure; Satisfaction; Double–hurdle model; Spending behaviour.
    JEL: C19 D12 L83
    Date: 2013–12
  6. By: Dončić, Dalibor; Nastić, Rade
    Abstract: In this paper, we analyzed in detail elements of the marketing mix of fruit and vegetables, therefore this product, price, distribution, promotion and people in Bosnia and Herzegovina, after seven years of liberal market within CEFTA. Each element of the marketing mix is analyzed for the most important vegetable species (cabbage, onions, peppers, tomatoes) and fruit species (apple, pear, plum). The analyzed elements of the marketing mix are compared with the characteristics of the elements of the marketing mix before integration BiH in CEFTA and people monitor the achieved level of competitiveness of fruit and vegetable producers in BiH.
    Keywords: agricultural trade liberalization, fruit, vegetables, producers, marketing mix, CEFTA, competitiveness, Crop Production/Industries, International Relations/Trade, Marketing,
    Date: 2013–08
  7. By: Popović, Rade; Radovanov, Boris; Jeremić, Marija
    Abstract: International milk market is created by 7% of world production volume. Volatile world milk prices in recent 6 years caused different forms of its transmission to national levels. In the paper this phenomena is investigated on two levels. First, on macro level how world milk price affects national markets in case of New Zealand as leading world exporter, Germany with growing net export, and Serbia with self-sufficient production. Second, it is analysed vertical price transmission in Serbian milk supply chain, according its magnitude, speed, nature and direction in period January 2007 to May 2013. Results improved understanding how world milk price influence milk price in Serbia and how price shocks are transmitted through milk supply chain for several most important kinds of milk products.Applied vector error correction model in horizontal milk price transmission indicates asymmetry in price transmission from world to Serbian milk market. Milk prices in Serbia respond to price signals from German and world market, but with significant time lags and increasing magnitude over time. From first to fourth month delay, milk prices from German market positively influence Serbian market, and from fifth to tenth month further increasing influence of world milk prices are presented. Nature of spatial asymmetry is positive. Results of threshold vector error correction model applied on dairy supply chain, suggests similar conclusionsfor all four major dairy products on Serbian market. Retail prices react mostly on raw milk price changes, with constant response to processor’s prices. Price shocks are originate at the processor level and are passed to farmers and to retailers. Blurred relationship between processing and retail sector permits more accurate analysis.
    Keywords: milk, price, transmission, World, Serbia, Agribusiness, Demand and Price Analysis, International Relations/Trade,
    Date: 2013–08

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