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on Marketing |
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Issue of 2014‒07‒28
six papers chosen by Joao Carlos Correia Leitao Universidade da Beira Interior and Universidade de Lisboa |
| By: | Henning Klodt ,; Anna Hartmann |
| Abstract: | Deflation is said to dampen aggregate demand because consumers would defer purchases while waiting for prices to fall further in the future. We explore the validity of this reasoning at the level of individual goods. Our findings suggest that the widespread concerns about impaired aggregate consumption by deflation might lack a sound microeconomic foundation |
| Keywords: | Deflation, postponed consumption, consumer price statistics |
| JEL: | E31 D12 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1935&r=all |
| By: | Nicholas Trachter (Federal Reserve Bank of Richmond); Andrea Pozzi (Einaudi Institute for Economics and Fina); Luigi Paciello (Einaudi Institute (EIEF)) |
| Abstract: | We study a model where customers face frictions when changing their supplier, generating sluggishness in the firm's customer base. Firms care about expanding their customer base and this affects their pricing strategy. We characterize optimal pricing in this model and estimate it using data on the evolution of the customer base of a large US retailer. The introduction of customer markets reduces average markups, more markedly for less productive firms. We use the model to perform a counterfactual exercise and investigate the cyclical behaviour of markups in response to both aggregate supply and demand shocks. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed014:39&r=all |
| By: | Ilaria Dalla Pozza |
| Abstract: | During the past two decades, customer satisfaction (CS) management has emerged as a strategic imperative for many organizations and has become an extremely popular topic for academics, managers and consultants (Kumar, Dalla Pozza, & Ganesh, 2013). CS measures the extent to which a product or service has reached expectations or how a product performed compared to an ideal. |
| Date: | 2014–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-416&r=all |
| By: | Andrew T. Ching (Rotman School of Management, University of Toronto, Canada); Tülin Erdem (Stern School of Business, New York University, USA); Michael P. Keane (Nuffield College, University of Oxford) |
| Abstract: | Models of consumer learning and inventory behavior have both proven to be valuable for explaining consumer choice dynamics. In their pure form these models assume consumers solve complex dynamic programming (DP) problems to determine optimal choices. For this reason, these models are best viewed as “as if” approximations to consumer behavior. In this paper we present an estimation method, based on Geweke and Keane (2000), which allows us to estimate dynamic models without solving a DP problem and without strong assumptions about how consumers form expectations about the future. The relatively low computational burden of this method allows us to nest the learning and inventory models. We also incorporate the “price consideration” mechanism of Ching, Erdem and Keane (2009), which essentially says that consumers may not pay attention to a category in every period. The resulting model may be viewed as providing a more “realistic” or “descriptive” account of consumer choice behavior. |
| Date: | 2014–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:nuf:econwp:1401&r=all |
| By: | V. L. MIGUÉIS; D. VAN DEN POEL; A.S. CAMANHO; JOAO FALCAO E CUNHA (-) |
| Abstract: | Currently, in order to remain competitive companies are adopting customer centered strategies and consequently customer relationship management (CRM) is gaining increasing importance. In this context, customer retention deserves particular attention. This paper proposes a model for partial churn detection in the retail grocery sector that includes as a predictor the similarity of the products' first purchase sequence with churner and non-churner sequences. The sequence of first purchase events is modeled using Markov for discrimination. Two classification techniques are used in the empirical study: logistic regression and random forests. A real sample of approximately 95.000 new customers is analyzed taken from the data warehouse of a European retailing company. The empirical results reveal the relevance of the inclusion of a products' sequence likelihood in partial churn prediction models, as well as the supremacy of logistic regression when compared with random forests. |
| Keywords: | Credit Scoring, Quantile regression, Classification, Bayesian estimation, Markov Chain Monte Carlo Customer relationship management, Churn analysis, Retailing, Classification, Logistic regression, Random forests |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:12/806&r=all |
| By: | Hameed, Irfan; Soomro, Yasir |
| Abstract: | This empirical research investigates the impact of windowsill placement on the compulsive buying behavior of consumers on three different types of products i.e., convenience products, shopping products, and specialty products. Positive effect of windowsill placement on all three types of product categories has been hypothesized. The categorical regression (Optimal scaling) was used to test the hypotheses. The data was collected via self administered questionnaire from Pakistan through systematic random sampling, and the sample consisted of 500 respondents. The results of data analysis supported only the 1st hypothesis which highlighted that placement of products in shopping centers has an impact of unplanned buying of consumers for convenience products. While rest of the two hypotheses regarding shopping and convenience products were not supported by the data. This research is helpful for those companies which believe in classical conditioning. This is perhaps one of the first study in non-western (Pakistani) context. |
| Keywords: | WINDOWSILL PLACEMENT, COMPULSIVE BUYING, CONVENIENCE PRODUCTS, SHOPPING PRODUCTS, SPECIALTY PRODUCTS |
| JEL: | M31 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57417&r=all |