nep-mkt New Economics Papers
on Marketing
Issue of 2015‒06‒20
three papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Brand the Pricing: Critical Critique By Alam Kazmi, Syed Hasnain
  2. Flying Dutchman vs. Flying Chef: How National Cultures Shape the Brand Positioning of Flagship Carriers? The Cases of Royal Dutch Airlines and Turkish Airlines By Mehmet Sinan Erguven
  3. Fairness through Transparency: The Influence of Price Transparency on Consumer Perceptions of Price Fairness By Sandra Rothenberger

  1. By: Alam Kazmi, Syed Hasnain
    Abstract: Brand pricing decision models and established theories in the marketing and econometrics focus typically on assuming the symmetric competing businesses. The empirical generalities are key for strategic marketplace planning. The significance of pricing to customer store and brand choices are always regarded as a widely known truth among marketing scholars and explains consumer’s role responding to their psychological representations of price rather than price itself. Scholars have highlighted simple but earlier unrecognized marketing practices that managers can employ to cultivate the positioning of their prices. Many theoretical researches in promotions have focused its aspects on developing powerful pricing strategies and its impact on consumer decisions, which is might because much of the literature has focused on building and evaluating price promotion strategies. This review experiential will enlighten us on advancements that will also lead us for optimistic cross-brand category level, cross-cultural level and cross-national level influences in pricing strategies.
    Keywords: psychological, promotion, theory, consumer, brand, sales promotion
    JEL: M1 M3 M31
    Date: 2015–06–01
  2. By: Mehmet Sinan Erguven (Anadolu University)
    Abstract: A flagship carrier company is important for the country’s prestige and it is a channel to communicate about the national culture. Companies use the elements of the culture to create “the story” of their marketing communication plan. Today Royal Dutch Airlines (KLM) is positioning the brand on the concept “surprising”, while Turkish Airlines (THY) prefers “the perfect gastronomic experience” with the celebrity endorsement format. This study is trying to identify the reasons of these choices. Case study method is used to understand the logic behind the brand positioning of two companies. Documents, archival records and marketing communication efforts of the two brands are analyzed retrospectively. Results show that national cultures are dominating the marketing communication strategies and brand positioning of KLM and THY. The clichés and stereotypes of national cultures are used in marketing communication messages. On the other hand, both companies’ current brand positionings are shaped after some air crashes. KLM’s Tenerife and THY’s Schiphol accidents are dramatically affected the marketing communication strategies’ of this two flagship carriers.
    Keywords: Brand Positioning, Marketing Communication Strategy, Turkish Airlines, Royal Dutch Airlines.
  3. By: Sandra Rothenberger
    Abstract: This study proposes that price transparency is a significant factor affecting customer judgments of the fairness of sellers’ prices. Cognitive judgments of fairness require a certain amount of information processing; therefore, the level of transparency and the amount of price information affect fairness judgments. The more clear information consumers possess concerning seller prices, the more positive the judgment will be. Customer price fairness judgment is an effective measurement for the evaluation of customer satisfaction that can increase the attitudinal loyalty of customers to the seller. The impact of price transparency on judgments of price fairness and the effects on satisfaction and loyalty are tested using a structural equation model and a sample of 1,459 passengers of a major European train company.
    Keywords: Price fairness; Price fairness; Satisfaction; Attitudinal loyalty; Price sensitivity
    JEL: M31
    Date: 2015–05–07

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