nep-mkt New Economics Papers
on Marketing
Issue of 2015‒06‒05
five papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. VIRAL MARKETING By Mira Rakic, Beba Rakic
  2. The roles of human values and generalized trust on stated preferences when food is labeled with environmental footprints: insights from Germany By Grebitus, Carola; Steiner, Bodo; Veeman, Michele
  4. Help us to help us: how consumer data can alter quality races By Christian Trudeau; Zheng Wang
  5. Small scale farmers in the market and the role of processing and marketing cooperatives: A case study of Italian dairy farmers By Cazzuffi, Chiara

  1. By: Mira Rakic, Beba Rakic (Graduate School of Business Studies, Megatrend University, Belgrade)
    Abstract: The focus of this paper is viral marketing – the process of creating, receiving, sending and forwarding “virus”-marketing messages. Model “5C” is presented according to which the passing on of viral marketing messages depends on consumers, category, company, content (of message) and context. Viral messages can be created by both the representatives of a company and consumers (like individuals or in communities), but they are being passed on by consumers. When a company creates a viral message, it is “only” necessary to create “the right marketing message” (with the right content) - with a viral potential – virus and pass it on to the “right users-consumers” in the “right context”. Since the users of digital media and/or consumers also create and pass on messages, companies have to check and "direct" all viral communications (related to the company) in a desired direction.
    Keywords: viral marketing, viral communications, viral messages, 5C model
    JEL: M30 M31 M37 M39
    Date: 2015–01
  2. By: Grebitus, Carola; Steiner, Bodo; Veeman, Michele
    Abstract: This study explores influences of human values and trust on stated preferences for food labeled with environmental footprints. We apply survey data to assess influences of these individual-specific characteristics on German consumers’ stated choices of potatoes, through an attribute-based choice experiment in which product alternatives are described by footprint labels and prices. We find that accounting for consumers’ value systems, but not generalized trust beliefs, aids in understanding choices and identifying possible markets for footprint-labeled food products.
    Keywords: carbon footprint, ecological, Rokeach Value Survey, environmental sustainability, mixed logit
    JEL: C25 C9 M31 Q5
    Date: 2014
  3. By: Zeljko Deviæ, Nikola Curæiæ, Nikola Radivojeviæ (Visoka ekonomska škola strukovnih studija Peæ u Leposaviæu)
    Abstract: Interorganizational nature and global character of business-to-business market have given marketing communications significant role in linking industrial companies with international organizational buyers. This paper is devoted to the formulation of the global communication concept in this area. The authors specifically discuss international communications strategy in business-to-business market, as well as organization and instruments of global promotional mix with an emphasis on their effective synchronizing.
    Keywords: international business-to-business market, marketing communications, global promotional concept
    JEL: M30 M31
    Date: 2014–10
  4. By: Christian Trudeau (Department of Economics, University of Windsor); Zheng Wang (Capital University of Business and Economics)
    Abstract: Recent technological changes have made it easy for firms to collect data on their consumers, which in turns allows them to improve the efficiency of their R&D. We explore the strategic interaction that occurs when two firms compete in a vertically-differentiated market to acquire this data and invest in R&D to set the quality of their product. Among our results, we find that if the initial quality lead is not too large, there exists equilibria where the laggard is able to reverse the lead by being particularly aggressive in acquiring this consumer data. While total welfare is higher when the initial leader maintains its lead, consumers prefer leapfrogging.
    Keywords: consumer data, vertical differentation, quality race, leapfrogging
    JEL: C72 L11 L13 L41
    Date: 2015–05
  5. By: Cazzuffi, Chiara
    Abstract: Agricultural markets are often characterised by imperfect competition between buyers of farm produce. Cooperatives are often regarded as one possible way to enhance welfare for small producers, while others view them as an inefficient historical relic. My thesis investigates empirically the coexistence of cooperative and capitalistic processing and marketing firms in the market for raw milk in three Italian provinces, using a dataset I collected via a survey of dairy farmers. First, I analyse what accounts for variation in market structure within each province and what drives coop membership when choice is available. Geography is found to influence both number and nature of processing firms operating at a given location. Where farms are more isolated and scale of production is smaller, cooperatives have – historically – tended to prevail, and often remain the only buyer today. Where both coops and capitalistic processors are available, parental membership status is more important for the decision of a farmer to join the cooperative, suggesting some degree of inertia. Second, I investigate whether there is any evidence that selling through a cooperative makes a difference for farmers, with respect to both price and non-price characteristics of the relationship. With respect to non-price characteristics, results show that cooperatives draw less complex contracts with members compared to capitalistic processors with their suppliers, are less likely to pay a lower price than agreed, and more likely to offer technical assistance. Members and non-members do not appear to differ in their perceived net benefits from the exchange relationship, but benefits from membership appear to be larger for smaller than larger farmers. As regards whether cooperative membership, per se, has any effect on price paid to farmers, the theoretical literature suggests that asymmetric price competition between two firms with different objective functions, in a spatial market, under different spatial pricing policies, can lead to price differences between the two. This prediction is tested by estimating the effect of coop membership on prices paid using four different nonexperimental evaluation methods. The results show a positive and significant effect of membership, driven by more remote farmers with smaller scale of production, located in areas of cooperative monopsony.

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