nep-mkt New Economics Papers
on Marketing
Issue of 2014‒12‒03
fourteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Socially-Responsible Certification Schemes for Smallholder Coffee Farmers: Economics of Giving and Consumer Utility By Verteramo Chiu, Leslie J.; Gómez, Miguel I.; Kaiser, Harry M.; Yan, Jubo
  2. Can Explicit Price Reminders Mitigate Hypothetical Bias in Online Choice Experiment? By Lim, Kar Ho; Hu, Wuyang
  3. The Role of Peasant Marketing Institutions in Market Access for Smallholders: A Micro-evidence from Rural Java By Ikeda, Shinya; Hitoshi, Yonekura
  4. The Effects of Media Coverage of the 2009 Cookie Dough Recall on the Demand for the Brand and the Close Substitutes By Bharad, Abhishek; Harrison, R. Wes; Davis, Christopher
  5. Valuing Information on GM Foods in the Presence of Country-of-Origin Labels By Xie, Jing; Hyeyoung, Kim; House, Lisa
  6. What’s Cooking? Demand for Convenience Foods in the United States By Okrent, Abigail; Kumcu, Aylin
  7. When the Baby Cries at Night: Inelastic Buyers in Non-Competitive Markets By Calzolari, Giacomo; Ichino, Andrea; Manaresi, Francesco; Nellas, Viki
  8. Why Are Wal-Mart and Target Next-Door Neighbors? By Schuetz, Jenny
  9. Consumer Response to Media Information: The Case of Grapefruit-Drug Interaction By Kim, Hyeyoung; House, Lisa A.; Salois, Matthew
  10. Benefits through Utilising EPC Network Components in Service-Oriented Envi-ronments – an Analysis using the Example of the Food Industry By Tröger, Ralf; Reiche, Robert; Schiefer, Gerhard
  11. How does the revelation of previous bid affect new bid? By Li, Yingzi; Gallardo, R. Karina; McCracken, Vicki; Yue, Chengyan; Luby, James; McFerson, James R.
  12. The Divergence of Defining Local Food – Consumer Co-op versus Conventional Grocery Shoppers By Yang, Shang-Ho; Woods, Timothy
  13. QoE: A market perspective analysis By Martinez, Luis; Ahmed, Ashraf Awadelkarim Widaa; Segall, Zary
  14. AN ECONOMIC ANALYSIS OF NANOFOOD LABELING By Tran, Van T.; Yiannaka, Amalia; Giannakas, Konstantinos

  1. By: Verteramo Chiu, Leslie J.; Gómez, Miguel I.; Kaiser, Harry M.; Yan, Jubo
    Abstract: We study consumer preferences for socially-responsible certified coffee based on alternative ways to distribute the price premium of the product. We use Becker, DeGroot, and Marschak (BDM) auctions in an experimental setting to elicit consumer willingness to pay for two socially-responsible certified coffee systems: the existing Fair Trade and a hypothetical certification called Sustainable Trade. These certification schemes differ in the way the price premium is given to producers. In the Fair Trade certifications growers receive a cash transfer whereas in the Sustainable Trade certification a portion of the premium is allocated to a social project in the grower’s community. We segment consumers as donors and non-donors and show that individuals who donate have strong preferences for certification systems that support social projects relative no non-donors. We also find that consumer attitudes toward donating have a strong effect on their willingness to pay for certified coffee. This effect is higher for consumers that donate a higher part of their income to charities.
    Keywords: Social Certifications, Fair Trade, Altruism, Consumer Demand, Experimental Auctions., Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2014
  2. By: Lim, Kar Ho; Hu, Wuyang
    Keywords: Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing, Research Methods/ Statistical Methods,
    Date: 2014
  3. By: Ikeda, Shinya; Hitoshi, Yonekura
    Keywords: Agribusiness, Community/Rural/Urban Development, Marketing,
    Date: 2014
  4. By: Bharad, Abhishek; Harrison, R. Wes; Davis, Christopher
    Keywords: Food Safety, Food Marketing, Media Information, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2014
  5. By: Xie, Jing; Hyeyoung, Kim; House, Lisa
    Abstract: Information on production methods (genetic modification or organic production) and locations (country of origin) are commonly found on food package labels. Both pieces of information may be used as a proxy for food safety and quality by consumers. Our study investigates the interactive effects between information on production method and COOL by conducting choice experiments in the European Union, United States and Japan. This study also investigates the effect of information about potential benefits of biotechnology on consumer acceptance of GM foods. Results indicate that consumers preferred GM foods produced domestically to GM foods imported from foreign countries, and individuals with information on consumer benefits, producer benefits, and environmental benefits were willing to pay more than individuals without information in some cases, but the effect of information varied by type of information, location, and the country of origin of the products.
    Keywords: Genetically modified food, biotechnology, country of origin, consumer attitudes, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2013–09
  6. By: Okrent, Abigail; Kumcu, Aylin
    Abstract: Demand for convenience foods has grown in the United States, which has implications for dietary quality and health, but little is known about the drivers behind the growth in purchases of such foods. We construct a novel data set that contains price indexes, budget shares, advertising expenditures, and demographic and time variables for four Census regions between 1999 and 2010 for six types of convenience foods, including 4 food-at-home categories—basic ingredients, complex ingredients, ready to cook and ready to eat—and 2 food-away-from-home categories—fast food and sit down. We use these data to model demand for convenience foods using the almost ideal demand system, and then use the estimates to decompose growth in demand for convenience foods into price, advertising, demographic and time factors.
    Keywords: food away from home (FAFH), convenience foods, demand analysis, advertising, Demand and Price Analysis, Marketing,
    Date: 2014–07
  7. By: Calzolari, Giacomo (University of Bologna); Ichino, Andrea (European University Institute); Manaresi, Francesco (Bank of Italy); Nellas, Viki (University of Bologna)
    Abstract: We investigate empirically how sellers react to changes in the population of their consumers, identifying the effects of demand composition and demand size with limited information on costs. We show how pharmacists in Italy selectively increase the price of some products when they observe in their cities an exogenous influx of parents of newborns, conceivably less elastic buyers as compared with other more experienced and less pressed consumers. Exploiting population based laws that fix the number of pharmacies in a city, we use RDD to measure the effect of competition on sellers' ability to extract surplus from less elastic buyers.
    Keywords: demand elasticity, consumer's information, price competition, pharmacies, regression discontinuity
    JEL: D43 D83 L13
    Date: 2014–09
  8. By: Schuetz, Jenny (Board of Governors of the Federal Reserve System (U.S.))
    Abstract: One of the most notable changes in the U.S. retail market over the past twenty years has been the rise of Big Box stores, retail chains characterized by physically large stores selling a wide range of consumer goods at discount prices. A growing literature has examined the impacts of Big Box stores on other retailers and consumers, but relatively little is known about how Big Box stores choose locations. Because Big Box stores offer highly standardized products and compete primarily on price, it is likely that they will seek to establish spatial monopolies, far from competitor stores. In this paper, I examine where new Big Box stores locate with respect to three types of existing establishments: own-firm stores, other retailers in the same product space (competitors), and retailers in other product spaces (complements). Results indicate that new Big Box stores tend to avoid existing own-firm stores and locate near complementary Big Box stores. However, there is little evidence that new Big Boxes avoid competitors. Firms in the same product space may not be perfect substitutes, or firms may prefer to share consumers in a desirable location rather than cede the entire market to competitor firms.
    Keywords: Retail location; spatial competition; agglomeration; Big Box stores
    JEL: L81 R12 R32
    Date: 2014–10–06
  9. By: Kim, Hyeyoung; House, Lisa A.; Salois, Matthew
    Abstract: There is an extensive literature examining the role of media information and coverage on influencing consumer perception and behavior, particularly with respect to food choices. Consumer response to media information on food-drug interactions has yet to be examined. The goal of this research is to measure the effect of media exposure on grapefruit/grapefruit juice consumption, with particular attention on news relating to grapefruit-drug interaction. A survey is employed to understand respondent attitudes about health news on TV and the internet and to measure the effect of media coverage on consumption changes of grapefruit and grapefruit juice. A sample selection model modified to account for ordered responses is used to account consumers exposed versus not exposed to such information. Results show that consumer attitudes toward health news were significantly related to exposure to media information on grapefruit. Also, exposure to grapefruit drug-interaction does have a tendency to result in reduced consumption, in particular aged consumers, however, only a small proportion of consumers are both exposed to such media and are active consumers of grapefruit/grapefruit juice.
    Keywords: food-drug interaction, sample selection, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety,
    Date: 2014
  10. By: Tröger, Ralf; Reiche, Robert; Schiefer, Gerhard
    Abstract: readily available, and of the quality and diversity consumers expect. However, prevalent information systems (IS) of companies in the food industry are not ready to support further significant improve-ments. They especially lack the capability to exchange relevant information in an efficient manner. Since recently, two major developments can be observed from IS perspective: the spreading of ser-vice-oriented architectures (SOA) as well as an increase in mass serialization (due to public and pri-vate traceability requirements, e.g.). So far, though most important due to food safety, a growing need to become more efficient as well as an increasing information demand of consumers, the food sector has attracted little attention in literature concerning an analysis about the potential of both service-orientation and the Electronic Product Code (EPC) Network. This is why this paper will inves-tigate to which extent these two developments can contribute to facilitate food companies’ IS help-ing them to maintain their competiveness. As a starting point, the research paper will depict the state of the art including SOA and the EPC Net-work. After describing the research approach, it will proceed with a characterisation of the food sec-tor including an examination why there is need for action. Based on current research findings as well as experience gathered in recent projects, the paper will investigate the application of the EPC Net-work with its three major components, i. e. EPCIS (EPC Information Services), ONS (Object Name Service) and the EPC Discovery Services, as part of future IS architectures in this sector. The paper will close with a discussion whether the envisioned IS architecture is appropriate to accomplish the previously identified challenges and requirements in the food sector in a more agile, efficient and effective way. What is more, it will highlight the most pressing challenges and provide an outlook as to the following steps of the research.
    Keywords: Electronic Product Code, EPC Network, EPCIS, Food Industry, SOA, Object Name Service, Discovery Services, Agribusiness, Food Consumption/Nutrition/Food Safety, Industrial Organization, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods,
    Date: 2013–09
  11. By: Li, Yingzi; Gallardo, R. Karina; McCracken, Vicki; Yue, Chengyan; Luby, James; McFerson, James R.
    Abstract: This study investigates the effect of the revelation of posted bids in second-price experimental auctions for apple quality attributes under the experimental design where information is added progressively across rounds. We find that the revelation of posted bids does not bias the following bids and that increased information about the apple increases the accuracy of participants’ following bids. Therefore, the final round bids are used to evaluate consumers’ willingness to pay for the apple attributes of interest in this study. Consumers are found to prefer large, firm, sweet, crisp and less defects coverage apples.
    Keywords: affiliation, experimental auctions, posted prices, willingness-to-pay, apple attributes, Demand and Price Analysis, Marketing,
    Date: 2014
  12. By: Yang, Shang-Ho; Woods, Timothy
    Abstract: The “Locally grown” or “buy local” concept has brought tremendous impacts in many different market venues. This study focuses on finding whether there is any difference on the local definition between traditional shoppers (Kentucky food consumers) and food co-op shoppers. Particularly, the definition of “local” is discussed in three different concepts, i.e., geographical, practical, and supportive concepts. Our results reveal that shoppers between food co-op and traditional stores define local quite differently. An interesting outcome indicates that the food co-op shoppers don’t hold a consistent definition of local if we segment shoppers into three groups, like the core/mid-level/periphery based on the percentage of shopping at store. The primary contribution of this study is the identification of clear consumer differences across consumers’ viewpoints on the definition of local across stores between the traditional and food co-op shoppers with important merchandising and sourcing implications for corresponding grocers.
    Keywords: Local Definition, Locally grown, Buy Local, Food Co-op, Grocery, Agribusiness, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2014–07
  13. By: Martinez, Luis; Ahmed, Ashraf Awadelkarim Widaa; Segall, Zary
    Abstract: With the development of mobile networks, customer needs and behaviours have changed. Mobile communications means so much more than simple voice communication; there is now mobile Internet with web surfing, videophone, streaming media, and micro blogging. The objective of network optimization has gradually shifted from enhancing network performance to improve quality of experience (QoE). Therefore, assessing and optimizing QoE is the trend for optimizing future mobile networks. Today, users want reliable access for their content, wherever they go in the network. To deliver the best possible experience to mobile broadband subscribers, operators need new ways to assess performance that will enable them to build and manage their networks in the most efficient way. The new paradigmatic eco system (user-interfacenetwork- content) requires novel and disruptive end-to-end considerations in order to enable and sustain the next generation of services and user experience. Thus, the extraordinary adoption of mobile connectivity by end users, and the need for optimized bandwidth management network resource, on the one hand, and the growing interest for good quality content delivery/consumption, is boosting the creation of new network solutions.
    Keywords: Quality of Service (QoS),Quality of Experience (QoE),mobile networks
    Date: 2014
  14. By: Tran, Van T.; Yiannaka, Amalia; Giannakas, Konstantinos
    Abstract: The paper examines the economic effects of labeling of food nanotechnology products using an analytical framework of heterogeneous consumers and imperfectly competitive suppliers. Labeling results in increased costs for nanofood producers that in turn increase nanofood prices and reduce their market demand; the cost effect of the labeling policy. Labeling also affects consumer preferences, the preference effect, by reducing uncertainty regarding the nature of the food product (certainty effect), and by potentially being perceived as a warning signal (stigma effect). The market and welfare impacts of nanofood labeling depend on which of the above effects dominate. If consumer aversion towards food nanotechnology increases due to labeling, nanofood suppliers incur losses to the benefit of suppliers of conventional and organic food substitutes and welfare decreases for most of consumers. Consumers who experience greater losses are those with relatively high aversion to interventions in the production process. On the other hand, if the labeling regime results in consumers becoming less averse to food nanotechnology and the preference effect dominates the cost effect, then nanofood suppliers see their profits increase. The economic impacts of nanofood labeling are intensified when consumers have low awareness of food nanotechnology prior to the implementation of the labeling policy and/or when competition among food suppliers is more intense.
    Keywords: food nanotechnology, consumer heterogeneity, consumer and producer welfare, food labeling, Food Consumption/Nutrition/Food Safety, L13, Q13, Q18,
    Date: 2014

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