nep-mkt New Economics Papers
on Marketing
Issue of 2014‒04‒18
eight papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior and Universidade de Lisboa

  1. Don’t Call Me “Brand Loyal”: The Role of Market Metacognition on Market-Related Labeling Effectiveness By Bourjot-Deparis, Julien; Caffier de Kerviler, Gwarlann; Cadario, Romain
  2. Learning in Advance Selling with Heterogeneous Consumers By Oksana Loginova; X. Hnery Wang; Chenhang Zeng
  3. Factors Affecting a Brand’s Perception in Russia By Gerasimenko Valentina; Ochkovskaya Marina; Rybalko Maria
  4. Video Killed the Radio Star? Online Music Videos and Digital Music Sales By Tobias Kretschmer; Christian Peukert
  5. Consumers’ valuation of national versus foreign varieties of tomatoes: results of a contingent valuation study in Portugal By Anabela Botelho; Isabel Dinis; Lina Sofia Lourenço-Gomes; Jorge Moreira; Lígia M.Costa Pinto
  6. A Large-Scale Marketing Model using Variational Bayes Inference for Sparse Transaction Data By Tsukasa Ishigaki; Nobuhiko Terui; Tadahiko Sato; Greg M. Allenby
  7. Do Consumers' Preferences Really Matter? - A Note on Spatial Competition with Restricted Strategies By Buechel, Berno; Klein, Jan
  8. Parrainage sportif des banques françaises : Une approche par la congruence By Odile CHANUT; Dominique BONET FERNANDEZ; François DURANT

  1. By: Bourjot-Deparis, Julien; Caffier de Kerviler, Gwarlann; Cadario, Romain
    Abstract: Labeling a customer as being “brand loyal” is a common marketing practice. Building on the literature on social labeling, marketplace metacognition and skepticism, we investigate the effects of such a practice. We find that skepticism, conceptualized as an expression of marketplace metacognition activation, mitigates labeling effectiveness. More precisely, the label is effective only when it does not trigger skepticism, i.e. when the label is congruent with self-perceptions. However, when the label is not congruent with self-perceptions, it arouses skepticism and has a negative impact on future loyalty intentions. We discuss the implications for customer relationship management.
    Keywords: Social Labeling; Marketplace Metacognition; Skepticism;
    JEL: D12 M31
    Date: 2013–06
  2. By: Oksana Loginova (Department of Economics, University of Missouri-Columbia); X. Hnery Wang (Department of Economics, University of Missouri-Columbia); Chenhang Zeng
    Abstract: The advance selling strategy is implemented when a firm offers consumers the opportunity to order its product in advance of the regular selling season. Advance selling reduces uncertainty for both the firm and the buyer and enables the firm to update its forecast of future demand. The distinctive feature of the present study of advance selling is that we divide consumers into two groups, experienced and inexperienced. Experienced consumers know their valuations of the product in advance, while inexperienced consumers learn their valuations only in the regular selling season. The presence of experienced consumers yields new insights. Specifically, pre- orders from experienced consumers lead to a more precise forecast of future demand by the firm. We show that the firm will always adopt advance selling and that the optimal pre-order price may be at a discount or a premium relative to the regular selling price.
    Keywords: advance selling, the Newsvendor Problem, demand uncertainty, experienced consumers, inexperienced consumers, learning
    JEL: C72 D42 L12 M31
    Date: 2014–04–14
  3. By: Gerasimenko Valentina (Department of Economics, Lomonosov Moscow State University); Ochkovskaya Marina (Department of Economics, Lomonosov Moscow State University); Rybalko Maria (Department of Economics, Lomonosov Moscow State University)
    Abstract: This paper demonstrates the importance of a high perceived quality for brands and delves into ways for strengthening it, as well as examining the global trends which affect a consumers’ decision, particularly in the Russia. Taking into account these trends, the authors study the factors behind a positive effect on the brands’ perception in Russia and present ways to transform the high actual quality in the perceived one. The findings from different groups analyses carried out on female and young (students) consumers show the specific of global trends implementation in Russia. In addition, the analyses confirm the efficiency of ways for strengthening the perceived quality of brands.
    Keywords: Brand, brand reputation, brands perception, actual quality, perceived quality, global trends, consumers
    JEL: M31 M37
    Date: 2014–01
  4. By: Tobias Kretschmer; Christian Peukert
    Abstract: Sampling poses an interesting problem in markets with experience goods. Free samples reveal product quality and help consumers to make informed purchase decisions (promotional effect). However, sampling may also induce consumers to substitute purchases with free consumption (displacement effect). We study this trade-o_ in the market for digital music where consumers can sample the quality of songs by watching free music videos online. Identification comes from a natural experiment in Germany, where virtually all videos that contain music are blocked on a popular video platform due to a legal dispute with representatives of the rights-holders. We show that promotional and displacement effects cancel out in the sales performance of individual songs, whereas online music videos trigger sales of albums.
    Keywords: Sampling, displacement, promotion, natural experiment
    JEL: L82 M37 D83
    Date: 2014–04
  5. By: Anabela Botelho (NIMA, Universidade do Minho); Isabel Dinis; Lina Sofia Lourenço-Gomes (University of Trás-os-Montes and Alto Douro); Jorge Moreira (CERNAS, Instituto Politécnico de Coimbra, Escola Superior Agrária de Coimbra); Lígia M.Costa Pinto (NIMA, Universidade do Minho)
    Abstract: The identification and characterization of consumers’ preferences for agricultural products may constitute a valuable tool for producers in identifying market niches for their current production and to plan activity choice for the future. Traditional varieties of fruits and vegetables have been subject to some scrutiny in this respect. However, but for a few studies, consumers’ preferences for tomatoes have rarely been studied. Using the contingent valuation methodology applied to a panel of six different varieties of tomatoes (three national varieties, and three foreign varieties), the present paper provides evidence concerning the most relevant determinants of consumers’ willingness to pay, controlling for place and mode of production of the tomatoes’ varieties. In addition, the study elicits consumers’ rating of these varieties with respect to appearance, taste, smell and texture. Based on our multivariate results, the estimated market price premium for national varieties of tomatoes is 35% relatively to foreign varieties.
    Keywords: Valuation methods, Agro-food economics, elicitation of consumer preferences
    JEL: Q20 Q50 Q10
    Date: 2014–01
  6. By: Tsukasa Ishigaki; Nobuhiko Terui; Tadahiko Sato; Greg M. Allenby
    Abstract: Large-scale databases in marketing track multiple consumers across multiple product categories. A challenge in modeling these data is the resulting size of the data matrix, which often has thousands of consumers and thousands of choice alternatives with prices and merchandising variables changing over time. We develop a heterogeneous topic model for these data, and employ variational Bayes techniques for estimation that are shown to be accurate in a Monte Carlo simulation study. We find the model to be highly scalable and useful for identifying effective marketing variables for different consumers, and for predicting the choices of infrequent purchasers.
    Date: 2014–01
  7. By: Buechel, Berno; Klein, Jan
    Abstract: In the framework Hotelling-Downs competition two players can freely choose a position along a one-dimensional market. We introduce restrictions of feasible strategies and analyze the consequences for players and consumers. In equilibrium players may minimally differentiate away from the center of the market and even locate completely independently of consumers' preferences. We provide conditions for these novel cases as well as for the standard result that players locate on the median of the distribution of consumers. In addition to the short run, where restrictions are fixed, we elaborate on the long run by studying the players' choice of restrictions under (potential) market entry. In both settings, we find an inefficient outcome, in which a firm is capable of offering a product at the center of the market, but instead chooses a position that is worse for most of the consumers.
    Keywords: duopoly; product differentiation; Hotelling-Downs; median voter; market entry
    JEL: D43 D49 L13 P16
    Date: 2014–04–12
  8. By: Odile CHANUT; Dominique BONET FERNANDEZ; François DURANT
    Abstract: In a competitive environment, banks carefully develop communication policies, particularly institutional, with the main objective to provide content in terms of brand image. A tool is the sports sponsorship, a means of communication relevant for banks, provided however that sport sponsorship is well chosen and that there is match between the values conveyed through sport and personality of the bank. We propose a methodology to assess the congruence between the image of sports chosen by 5 French banks and personality of the banks. Our exploratory research is based on a sample of 170 bank customers. Our initial results indicate significant differences in congruence between banks.
    Keywords: Sponsoring, bank, sport, congruence.
    Date: 2014–04–10

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