nep-mkt New Economics Papers
on Marketing
Issue of 2014‒05‒04
eight papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior and Universidade de Lisboa

  1. Behaviour-Based Price Discrimination under Advertising and Imperfectly Informed Consumers By Rosa-Branca Esteves; Sofia Cerqueira
  2. Branding as a reflection of culture - An analysis of brand consumption patterns in China By Tristan Klocke; Joana César Machado
  3. Why are product prices in online markets not converging? By Takayuki Mizuno; Tsutomu Watanabe
  4. Who Should be in Power to Encourage Product Program Innovativeness, R&D or Marketing? By Stock, Ruth; Reiferscheid, Ines
  5. Marketing con causa. Evidencias prácticas desde la perspectiva del consumidor By Mª de las Mercedes Galán Ladero; Clementina Galera Casquet
  6. The Importance of Taste for Food Demand and the Experienced Taste Effect of Healthy Labels – An Experiment on Potato Chips and Bread By Thunström, Linda; Nordström, Jonas
  7. Collection and marketing of high value medicinal and aromatic plants from district Swat, Pakistan: By Sher, Hassan
  8. La confianza y la actitud hacia la red social como determinantes de la intención de aceptar herramientas de marketing. Diferencias según intensidad de uso de la red By Rebeca Cordero Gutiérrez; Libia Santos Requejo

  1. By: Rosa-Branca Esteves (Universidade do Minho - NIPE); Sofia Cerqueira (Universidade do Minho)
    Abstract: This paper is a first look at the dynamic effects of BBPD in a horizontally differentiation product market, where firms need to invest in advertising to generate awareness. When a firm is able to recognize customers with different purchasing histories, it may send them targeted advertisements with different prices. In comparison to no discrimination, it is shown that firms reduce their advertising efforts, charge higher first period prices and lower second period prices. In comparison to no discrimination, in contrast to the profit and consumer welfare results obtained under full informed consumers, it is shown that BBPD boosts industry profits and harms consumers.
    Date: 2014
  2. By: Tristan Klocke (Faculdade de Economia e Gestão, Universidade Católica Portuguesa - Porto); Joana César Machado (Faculdade de Economia e Gestão and CEGE, Universidade Católica Portuguesa - Porto)
    Abstract: This study examines cultural factors influencing brand building strategies in the Chinese market. Our purpose is to investigate what Chinese consumers value in a brand, examining consumer behavior as well as manufacturers and their business strategies to respond to customers. Findings show a positive correlation between branding strategies considering cultural factors and business success in China, implicating that culture, lifestyle, and economic development influence customers’ attitude towards a brand. In particular, brand image, a connection with a social group, and a strong need to avoid uncertainty, reflect dominant culture values in the purchase decision of consumer goods, implicating that they are valued as a reflection of Chinese consumers’ own cultural values. The paper concludes with a discussion about implications and suggestions for future research.
    Keywords: China, consumer goods, culture, consumption, branding
    Date: 2014–04
  3. By: Takayuki Mizuno; Tsutomu Watanabe
    Abstract: Why are product prices in online markets dispersed in spite of very small search costs? To address this question, we construct a unique dataset from a Japanese price comparison site, which records price quotes offered by e-retailers as well as customers' clicks on products, which occur when they proceed to purchase the product. We find that the distribution of prices retailers quote for a particular product at a particular point in time (divided by the lowest price) follows an exponential distribution, showing the presence of substantial price dispersion. For example, 20 percent of all retailers quote prices that are more than 50 percent higher than the lowest price. Next, comparing the probability that customers click on a retailer with a particular rank and the probability that retailers post prices at a particular rank, we show that both decline exponentially with price rank and that the exponents associated with the probabilities are quite close. This suggests that the reason why some retailers set prices at a level substantially higher than the lowest price is that they know that some customers will choose them even at that high price. Based on these findings, we hypothesize that price dispersion in online markets stems from heterogeneity in customers' preferences over retailers; that is, customers choose a set of candidate retailers based on their preferences, which are heterogeneous across customers, and then pick a particular retailer among the candidates based on the price ranking.
    Date: 2013–05
  4. By: Stock, Ruth; Reiferscheid, Ines
    Date: 2014
  5. By: Mª de las Mercedes Galán Ladero; Clementina Galera Casquet
    Abstract: El marketing con causa ha ido adquiriendo cada vez una mayor relevancia, siendo, actualmente, una de las principales iniciativas de responsabilidad social que llevan a cabo las empresas. Su característica más destacada es que la donación de la empresa está condicionada por las ventas; es decir, depende en última instancia del comportamiento del consumidor. En este trabajo realizamos un estudio descriptivo de la opinión y el comportamiento del consumidor sobre las acciones de marketing con causa de la empresa. También hacemos referencia al papel clave del distribuidor en el éxito de este tipo de programas. Finalmente, como principales aportaciones del estudio, destacamos, en general, su influencia en el comportamiento del consumidor y, específicamente, la de distintos aspectos de marketing operativo en la intención de compra de productos vinculados a estas campañas.
    Keywords: Marketing con Causa, Comportamiento del Consumidor, Responsabilidad Social Corporativa, Empresas, Organizaciones No Lucrativas
    JEL: L8 M31 J14
    Date: 2014–04
  6. By: Thunström, Linda (Department of Economics and Finance, University of Wyoming); Nordström, Jonas (Department of Economics, Lund University)
    Abstract: This paper quantitatively analyzes the importance of taste versus health in food demand, as well as the effect on consumers’ experienced taste of the non-intrinsic value of healthy labels. Our analysis is based on taste experiments and Vickrey second price auctions on potato chips and bread. Our findings imply a large positive effect on demand for potato chips from higher taste scores: when consumers’ experienced taste from potato chips improves by one unit, the average willingness-to-pay (WTP) for a 150 gram bag of chips increases by 25 euro cents. The estimated effect from taste on bread demand is smaller, but may be sizeable for subgroups of consumers. Our evidence suggests that demand for chips and bread is unaffected by nutrition – the effect of the healthy label on WTP is not statistically significant. Finally, we find that consumers’ experienced taste of a food is unaffected by the food carrying a healthy label.
    Keywords: willingness-to-pay for food; revealed preferences; taste; non-intrinsic value; healthy label
    JEL: D12 D83 Q18
    Date: 2014–04–23
  7. By: Sher, Hassan
    Abstract: The focus of the study was on the collection pattern of medicinal plants as an economic activity within District Swat and the likely destinations of these products in national or international markets. Local collectors/farmers and dealers were surveyed about their collection efforts, quantities collected, prices received, and resulting incomes. Herbal markets in major cities of Pakistan were surveyed for current market trends, domestic sources of supply, imports and exports of herbal material, price patterns, and market product-quality requirements
    Keywords: Drug plants, medicinal herbs, Medicinal plants, Markets, trade, Culinary herbs, high value minor crops,
    Date: 2013
  8. By: Rebeca Cordero Gutiérrez; Libia Santos Requejo
    Abstract: Las redes sociales horizontales se han convertido en los últimos años en un gran escaparate para las empresas. La comunidad científica no ha tratado en profundidad qué es lo que provoca que ciertos individuos decidan aceptar publicidad o participar en promociones a través de este medio. Más concretamente, el estudio pretende comprobar si es el número de horas dedicadas al uso de estas plataformas un factor determinante en su comportamiento. Este estudio desvela que los usuarios con un nivel de actividad media en estas redes sociales son más propensos a utilizar herramientas comerciales en red. Nuestros resultados y conclusiones arrojan luz a un campo del marketing tanto académico como profesional aún en desarrollo.
    Keywords: Red social, actitud, confianza, intención de comportamiento, intensidad de uso
    JEL: M31 M37 M39
    Date: 2014–04

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