nep-mkt New Economics Papers
on Marketing
Issue of 2014‒12‒19
thirteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Consumer Preferences for Quality and Safety Attributes of Duck in Restaurant Entrees: Is China A Viable Market for The U.S. Duck Industry? By Carnegie, Rachel; Wang, Holly; Widmar, Nicole; Ortega, David
  2. Borrowing on the Wrong Credit Card:Evidence from Mexico By Alejandro Ponce; Enrique Seira; Guillermo Zamarripa
  3. Home Meal Replacement Market Segmentation: A Food-Related Life Style By Jo, Hyebin; Lee, Seoyoun; Choe, Youngchan
  4. Does the Sustainability of Food Products Influence Consumer Choices? The Case of Italy By Banterle, Alessandro; Ricci, Elena Claire
  5. 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
  6. Incentives for Non-Price Competition in the California WIC Program By McLaughlin, Patrick W.
  7. Estimating demand for quadruple-play tariffs: The impact on consumer surplus By Grzybowski, Lukasz; Liang, Julienne
  8. U.S. consumer demand for cash in the era of low interest rates and electronic payments By Briglevics, Tamás; Schuh, Scott
  9. Do LTE service customers have different customer loyalty determinants? By Jung, Wonsuk; Kwon, Youngsun
  10. Two birds, one stone? Positive mood makes products seem less useful for multiple-goal pursuit By Anastasiya Pocheptsova; Francine Espinoza Petersen; Jordan Etkin
  11. Learning in Credence Good Markets: An Example of Vitamins By Demko, Iryna; Jaenicke, Edward
  12. EU Consumers’ Perceptions of Fresh-cut Fruit and Vegetables Attributes: a Choice Experiment Model By Baselice, Antonio; Colantuoni, Francesca; Lass, Daniel A.; Nardone, Gianluca; Stasi, Antonio
  13. Does passion for wine matter? The effects of owner motivation in non-traditional wine regions By Li, Jie; Gómez, Miguel I.

  1. By: Carnegie, Rachel; Wang, Holly; Widmar, Nicole; Ortega, David
    Keywords: Consumer Preferences, Choice Experiment, China, Duck, Food Service Industry, Agribusiness, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2014
  2. By: Alejandro Ponce (World Justice Project); Enrique Seira (Centro de Investigación Económica (CIE), Instituto Tecnológico Autónomo de México (ITAM)); Guillermo Zamarripa (FUNDEF, México)
    Abstract: We study how consumers allocate debt across credit cards they already hold using new data on credit card activity for a representative sample of consumers with two homogeneous cards in Mexico. We find that relative prices are a very weak predictor of the allocation of debt, purchases, and payments. On average, consumers pay 31% above their minimum financing cost. Evidence on cross-card debt elasticities with respect to interest rates and credit limits show no substitution in the price margin. Our findings offer evidence against the cost-minimizing hypothesis, provide support to behavioral explanations, and have important implications for pricing and competition.
    Keywords: Credit cards; household finance; consumer behavior; Mexico
    JEL: D12 D14 D40 G02 G20 G28
    Date: 2014
  3. By: Jo, Hyebin; Lee, Seoyoun; Choe, Youngchan
    Abstract: The Home Meal Replacement (HMR) sector has been growing rapidly in the food industry. Due to the conveniences that the HMR product offers, the target consumers are generally busy workers and/or individuals who live alone. This study aims to investigate factors that affect the purchasing of HMR products and to formulate strategies for future HMR product sales. This study examines the effect of five independent variables: dine-out frequency, dine-out costs, and the employment status of housewives, involvement of meal preparation, and the role of overload on HMR purchase behavior. The study also examines what influences the purchasing of HMR products through different kinds of lifestyles. Surveys were conducted with a panel of housewives from major metropolitan areas in South Korea and configured by clusters according to different lifestyles. The panel of housewives was divided into four groups based on Food Related Lifestyles: Price Insensitive Group, Pride in Cooking Group, Indifference to Health Group and Against Eating Out Group. The results indicate that HMR sales target segments are consumers who tend to dine-out more and desire a low involvement in meal preparation than consumers who are busy and have less time to cook at home.
    Keywords: Buying behavior, Food-related life style (FRL), Home meal replacement (HMR), Market segmentation, Role overload, Working status of wives, Agribusiness, Consumer/Household Economics, Marketing,
    Date: 2014
  4. By: Banterle, Alessandro; Ricci, Elena Claire
    Abstract: In this paper we analyse if there is a diffuesed interest among consumers about the environmental impacts of their food choices, and try to capture the different types of attitudes of Italian consumers with respect to environmental sustainability of food products. The analysis builds on a survey based on vis-a-vis interviews with 240 consumers in Milan, and on a cluster analysis. The results highlight a high level of stated concern about environmental issues and about possible impacts of personal food consumption choices on the environment. Nevertheless, when investigating their actions during everyday shopping we have identified four groups of consumers: (1) those who take into consideration the environmental information on labels do not require additional information; (2) those for which environmental information on labels does not have a great effect on purchase, but would like to receive more information; (3) those for which the presence of environmental information directs product selection and would also like to receive more; (4) those that do not take into account environmental issues when purchasing and are not interested in receiving more information about the impacts of the products.
    Keywords: Consumer Choices, Environmental Sustainability, Food labelling, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Health Economics and Policy, Research Methods/ Statistical Methods, D12, Q13, Q56,
    Date: 2013–09
  5. By: Bharad, Abhishek; Harrison, R. Wes; Davis, Christopher
    Abstract: Not only does information about food recalls play a vital role in changing the demand for implicated food products, but it also impacts the demand for close substitutes. The study aims to identify the structural change in demand for cookie dough due to the 2009 cookie dough recall of Brand1, one of the most publicized single brand recalls in recent years. The study utilizes Barten’s synthetic differential demand system, and introduces a sentiment analysis technique to identify the tone of media publicity and its effect on demand. The results suggest a spillover effect in the cookie dough market and finds that media sentiment has an effect on consumption.
    Keywords: Consumer Demand, Demand System, Food Safety, Information Effect, Sentiment Analysis, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing,
    Date: 2014
  6. By: McLaughlin, Patrick W.
    Keywords: non-price competition, WIC, Food Consumption/Nutrition/Food Safety, Industrial Organization, Marketing,
  7. By: Grzybowski, Lukasz; Liang, Julienne
    Abstract: This paper estimates demand for quadruple play mobile tariffs using a database of subscribers to a single mobile operator from a single town in a European country which has full coverage with both ADSL and FTTH broadband technologies. Based on the demand estimation we find that consumer valuation of FTTH broadband in 2013 increased over time while ADSL lost on attractiveness relative to FTTH but also in absolute terms, which suggests that consumers increasingly care about the speed of connection offered by FTTH. The consumer surplus increased substantially due to the introduction of quadruple play tariffs, and especially with the introduction of FTTH, and ongoing transition of consumers from less valued quadruple play tariffs with ADSL to more valued with FTTH. We also find that for quadruple play subscribers mobile data is complementary to fixed broadband access, which suggests that these consumers use Internet access via mobile handsets to sample online content but they complete their online activity using fixed Internet access at home. On the other hand, mobile voice usage is a substitute to fixed broadband access and consumers reduce their voice consumption once they get broadband connection. We also find that there are substantial switching costs between tariffs, which other things being equal greatly decrease consumer surplus.
    Keywords: Quadruple play,FTTH,ADSL,Mobile data,Switching costs
    JEL: L13 L43 L96
    Date: 2014
  8. By: Briglevics, Tamás; Schuh, Scott
    Abstract: U.S. consumers’ demand for cash is estimated with new panel micro data for 2008–2010 using econometric methodology similar to Mulligan and Sala-i-Martin (2000), Attanasio, Guiso, and Jappelli (2002), and Lippi and Secchi (2009). We extend the Baumol-Tobin model to allow for credit card payments and revolving debt, as in Sastry (1970). With interest rates near zero, cash demand by consumers using credit cards for convenience (without revolving debt) has the same small negative interest elasticity as estimated in earlier periods and with broader money measures. However, cash demand by consumers using credit cards to borrow (with revolving debt) is interest inelastic. These findings may have aggregate implications for the welfare cost of inflation because the non-trivial share of consumers who revolve credit card debt are less likely to switch from cash to credit. In the 21st century, consumers get cash from bank and non-bank sources with heterogeneous transactions costs, so withdrawal location is essential to identify cash demand properly. JEL Classification: E41, E42
    Keywords: Baumol-Tobin model, cash demand, SCPC, Survey of Consumer Payment Choice
    Date: 2014–03
  9. By: Jung, Wonsuk; Kwon, Youngsun
    Abstract: This study explores the determinants of customer loyalty in the Korean mobile telecommunications market with the emphasis on customer satisfaction and switching costs as major predictors of customer loyalty. South Korea has now become one of the world's most leading mobile service markets with the launch of its advanced LTE services; the LTE service subscription rate in Korea has exceeded 50% as of November 2013. This raises a question as to whether LTE service subscribers are different from 3G service subscribers. In this rapidly changing environment of mobile service markets, this study examines the validity of the traditional determinants of customer satisfaction in data-service oriented mobile markets, analyzes the effect of customer satisfaction and switching costs on customer loyalty, and assesses the difference between 3G and LTE subscribers with respect to their determinants of customer loyalty. The results showed that there are significant differences between 3G and LTE subscribers while traditional factors such as call quality, data quality, customer support, and price perception are still significant determinants of customer satisfaction.
    Keywords: LTE,3G,Customer Satisfaction,Switching Cost,Loyalty,Smartphone
    Date: 2014
  10. By: Anastasiya Pocheptsova (R. H. Smith School of Business, University of Maryland); Francine Espinoza Petersen (ESMT European School of Management and Technology); Jordan Etkin (Fuqua School of Business, Duke University)
    Abstract: Negotiating the pursuit of multiple goals often requires making difficult trade-offs between goals. In these situations, consumers can benefit from using products that help them pursue several goals at the same time. But do consumers always prefer these multipurpose products? We propose that consumers’ incidental mood state alters perceptions of products in a multiple-goals context. Four studies demonstrate that being in a positive mood amplifies perceptions of differences between multiple conflicting goals. As a consequence, consumers are less likely to evaluate multipurpose products as being able to serve multiple distinct goals simultaneously. We conclude by discussing implications of these findings for marketers of multipurpose products.
    Keywords: Goals, product evaluation, positive mood
    Date: 2014–11–11
  11. By: Demko, Iryna; Jaenicke, Edward
    Abstract: Unlike many studies of learning and pharmaceuticals, this paper considers credence goods such as vitamins and the role of consumer experience in resolving uncertainty when the user cannot observe the effects of the goods after consumption. The Homescan data justifies variations in the purchases: 45% of households choose different Universal Product Code (UPC) items during subsequent shopping trips than the ones they bought originally. My findings suggest that the probability of choosing Brand 1 increases after a positive experience with Brand 1 and declines after a positive experience with Brand 2. This is based on the assumption that the consumer has had a positive experience about the product if she bought it with a current purchase and three periods back. In a structural model I intend to relax this assumption and compare the endogenous speed of learning about vitamins with the speed of learning about drugs.
    Keywords: credence good, vitamin, learning, speed of learning, spillover effect, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, D83, L15, I1,
    Date: 2014–05–25
  12. By: Baselice, Antonio; Colantuoni, Francesca; Lass, Daniel A.; Nardone, Gianluca; Stasi, Antonio
    Abstract: The fresh-cut sector is constantly evolving and innovating in order to enhance quality and safety of products, which attributes are generally valued by consumers. Quality and safety are multifaceted attributes because they arise from a wide set of methods/technologies, therefore the knowledge about consumers’ preferences for food technologies is still matter of debate. The present paper tests whether new fresh-cut fruit and vegetables (F&V) attributes influence consumers’ choices and preferences. At the same time, we are able to verify the influence of socio-demographic characteristics on consumers’ preferences. A Latent Class Multinomial Logit Model has been fitted for four different European countries: Greece, Italy, Spain and United Kingdom, in order to divide the consumers in different latent classes based on their choice and their characteristics. Fresh-cut F&V consumers for the four European countries, have a similar behavior in terms of preferences. We can divide the consumers in two different latent classes: the first made by consumers that do not appreciate any fresh-cut F&V attributes, and the second that include consumers that appreciate the several fresh-cut F&V attributes.
    Keywords: fresh-cut fruit and vegetables, consumers' preferences, Choice Experiment, Latent Class Model, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, C83, D12, Q18,
    Date: 2014
  13. By: Li, Jie; Gómez, Miguel I.
    Keywords: Industrial Organization, Marketing,
    Date: 2014

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