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on Marketing |
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Issue of 2014‒03‒30
seven papers chosen by Joao Carlos Correia Leitao Universidade da Beira Interior and Universidade de Lisboa |
| By: | Palma, David; Dios Ortuzar, Juan de; Casaubon, Gerard; Rizzi, Luis I.; Agosin, Eduardo |
| Abstract: | Wine is a complex product. Preferences for it are not only highly heterogeneous throughout the population, but also amply susceptible to context. The objective of this study is to discover and measure these preferences, focusing on a set of non-sensory attributes of wine. To identify the most relevant non-sensory attributes of wine, from the consumers’ standpoint we considered four sources: existing literature, a Delphi survey (applied to wine marketing experts), in- depth interviews and a web-page survey answered by fairly large sample of wine consumers. Not all sources were consistent on which attributes were the most important. Notably, consumers did not select price as a relevant attribute on the web survey, even though it had been considered relevant in the in-depth interviews. Finally, six wine attributes were selected for inclusion in a stated choice (SC) experiment: grape variety, alcohol level, label design, product recommendations, price and discounts. An efficient experimental design was then developed and a web based SC survey was applied to 274 regular wine consumers (who had already answered the previous web survey). These consumers have high income (among the richest 20% of the Chilean population), only 28% of them are female and 33% are 35 years old or younger. The SC experiment simulated a purchase, at a retail store, for a casual meal with friends. A fixed fictional brand was used for all the wines presented on the experiment. With this data we estimated various discrete choice models, including mixed logit and hybrid choice models. Grape variety was found to be the main driver of preferences. Evidence of preference for higher alcohol levels was also discovered. Price proved to be highly endogenous, as it is strongly related to wine’s expected quality. Recommendation by a friend and critics were equally valued, except in the case of (self-declared) expert consumers. Preferences over label designs showed high variability. The results also suggest that price is a key attribute in the construction of expected quality by the consumer before tasting the product. |
| Keywords: | Hybrid Discrete Choice Models, Consumer choice, wine, Consumer/Household Economics, Demand and Price Analysis, |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aawewp:164855&r=mkt |
| By: | Nadia Jouini; Ilaria Dalla Pozza |
| Abstract: | A relationship marketing perspective is missed in measuring the success of online communities. Scope of this paper is to introduce a relationship marketing perspective in the definition of Key Performance Indicators (KPIs) for measuring the success of online communities. Online communities could be a marketing tool for strengthening customer relationships. |
| Date: | 2014–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-191&r=mkt |
| By: | Sylvie AVIGNON; Dominique BONET FERNANDEZ |
| Abstract: | Corporate social responsibility and ethics are part of business governance today and represents new ways of market adjustment for companies in quest of legitimacy in an uncertain environment. Tools such as codes of conduct or charts aim at clarifying business activities. However, in spite of their mediatisation, one can question their effective entrenchment and their impact on markets. In order to answer these questions, we propose a state of the art defining the notions of code of conduct and ethical chart both from a legal and a marketing perspective and discussing their effectiveness. |
| Keywords: | code of conduct, corporate social responsibility, law, marketing, communication |
| Date: | 2014–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-174&r=mkt |
| By: | Hicham ABBAD; Dominique BONET FERNANDEZ |
| Abstract: | The logistical service is perceived as a key factor for reducing product shipment costs from factories to store shelves, while guaranteeing sufficient reactivity to satisfy unpredictable consumer demand. Although this service is taken into account in the supply selection process, large retailers in Morocco still remain confronted with the logistical failure of most of their suppliers (no respect of delivery periods, increase in shortage rate…). This dissatisfaction in terms of suppliers’ logistical skills is a major source of conflict. The aim of this paper is to show how the relationship between major retailers and their local suppliers staff make it possible to manage this type of conflict. |
| Keywords: | interpersonal relationships, conflict, logistics, mass retailing, food industry, Morocco. |
| Date: | 2014–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-170&r=mkt |
| By: | Minjae Song (University of Rochester) |
| Abstract: | In this paper I estimate platform markups in two-sided markets using structural models of platform demand. My models and estimation procedure are applicable to general two-sided market settings where agents on each side care about the presence of agents on the other side and platforms set two membership prices to maximize the sum of profits. Using data on TV magazines in Germany I show that the magazines typically set copy prices below marginal costs and earn profits from selling advertising pages. I also show that mergers are much less anticompetitive than in one-sided markets and could even be welfare enhancing. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed013:1264&r=mkt |
| By: | Erik Strøjer Madsen (Department of Economics and Business, Aarhus University, Denmark); Yanqing Wu (Department of Economics and Business, Aarhus University, Denmark) |
| Abstract: | The opening of the markets in East Asia and Eastern Europe in the 1990s changed the structure of the beer markets and in the following years a large wave of mergers and acquisitions took place. The paper tracks the development in industry concentrations from 2002 to 2012, discusses some of the main drivers behind this development and points to economies of scale in advertising as a main pay-off from mergers and acquisitions. Using firm-level data both from the American market and the world market, the estimations verify significant economies of scale in marketing and distribution costs. Based on information from the Annual Reports of the eight largest breweries, the estimation proved a reduction in these costs of ten percent when doubling the size of the brewing groups. |
| Keywords: | Advertising, mergers and acquisitions, brewing industry |
| JEL: | L11 L66 M37 |
| Date: | 2014–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:aah:aarhec:2014-10&r=mkt |
| By: | Valentina Bracaglia (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza"); Tiziana D'Alfonso (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza"); Alberto Nastasi (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza") |
| Abstract: | We study airport competition when vertically differentiated products may be strategically offered at the time of ticket purchase through the Internet: a base product Ð the flight Ð and a composite one Ð the flight plus some premium commercials (PCs), as car parking, car rental or hotel reservation. We model a two stages game: first airports decide whether to offer PCs online, thus making the purchasing decisions interact through observability of aviation and commercial prices. Then, they engage in Bertrand competition deciding on both prices. We find that airports set lower aviation charge than they would have levied absent concessions, when they are both competing on online offers. Nevertheless, when only one airport pursues the online offer, that facility sets a higher aviation charge than it would have levied absent concessions, as long as profits from retail earned at the facility on the travel day are not high enough. This suggests that the combined effect between airports competition on side business and demand complementarity does moderate airports market power in the core business. The Nash equilibrium of the game is such that both airports offer PCs on line, making travelers account for the surplus they would gain from both the sides of the business when they buy air tickets. This is welfare enhancing. Nevertheless, when profits from retail earned at the airports on the travel day are sufficiently high, the facilities are caught in a PrisonerÕs Dilemma. |
| Keywords: | Airports competition; e-commerce; concessions; vertical differentiation |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:aeg:report:2014-04&r=mkt |