nep-mkt New Economics Papers
on Marketing
Issue of 2015‒07‒04
nine papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Assessing Customer Loyalty: A Literature Review By Moisescu, Ovidiu-Ioan
  2. La segmentation ethnique en marketing : un outil de maintien de la domination sociale en France. By Sondes ZOUAGHI
  3. Relative willingness to pay and surplus comparison mechanism in experimental auctions By COMBRIS Pierre; SEABRA PINTO Alexandra; GIRAUD HERAUD Eric
  4. A Survey-Based Analysis Regarding CSR Practices in the Romanian Tourism Distribution Sector By Moisescu, Ovidiu-Ioan
  5. Detection and Measurement of Sales Cannibalization in Information Technology Markets By Novelli, Francesco
  6. The Economics of Television and Online Video Markets By Crawford, Gregory S
  7. Measuring the impact of ‘leadership, context, the nature of the event and induced event experience’ on brand creation for the Sevens Wellington Rugby Tournament By Harrison, Sara
  9. Sponsor Partnerships - It's a lot like dating By Panizza, Janina

  1. By: Moisescu, Ovidiu-Ioan
    Abstract: In the contemporary market context, characterized by increasing competition and a rapidly changing marketing environment, customer loyalty has become an extremely valuable business intangible asset, being essential for any business strategy. Moreover, brand loyalty, as a constituent of brand equity, has been intensively researched as a key issue in the marketing literature of the last decades. The current paper is part of a larger study directed at analyzing the impact of perceived CSR on customer loyalty. Considering this larger study’s purpose, it is important that, before anything else, the theories and methodologies related to assessing perceived CSR and, respectively, customer loyalty be reviewed. This paper focuses on customer loyalty, by reviewing some of the most relevant scientific approaches regarding the methodologies that can be applied when customer loyalty must be assessed.
    Keywords: customer; brand; loyalty; assessment; trust; commitment
    JEL: M31
    Date: 2014–12
  2. By: Sondes ZOUAGHI (Université de Cergy-Pontoise, THEMA)
    Abstract: The present article poses the question of researcher responsibility in disseminating ideologies encouraging the cultural separation and pigeonholing of minority social groups within a dominant/dominated relationship. The roots of ethnic segmentation in the colonial paradigm is an eloquent example in research in marketing. And yet the paradigm splitting the world into centre and periphery or dominant and dominated is not the only one possible. Based on postcolonial studies, researchers in marketing address the ethnic market in as close proximity to consumers as possible and tailoring their methodologies to Consumer Culture Theory. They thus become aware that the ethnic sentiment does not exist without the involvement of the dominant group who impose this way of thinking on minorities. As to multicultural individuals, they navigate various social situations drawing on various ingredients of identity available. It is hence more a question of multiple selves than ethnic identity. They create their own identity and co-create new social categories out of the no-man’s lands between dominant and dominated groups. The postcolonial approach raises the question as to whether ethnicity is an artefact with no internal reality behind it, other than that of a top-down vision of minorities.
    Keywords: ethnic marketing, segmentation, colonial, postcolonial, consumer culture theory, identity.
    Date: 2015
    Abstract: We study the relative willingness-to-pay (WTP) of consumers according to the diversity of supply in a market and we show how the presence of substitutes for a given product leads to question the incentive mechanisms commonly used in experimental auctions. We propose a Surplus Comparison Mechanism (SCM) in order to yield WTP estimates which better take into account the choice set available to consumers. After showing the efficiency of this mechanism we test the SCM in a laboratory experiment, reconsidering WTP for food environmental certifications (Integrated Pest Management and Organic certification). It appears that WTPs are decreasing when more alternative certifications are offered to consumers.
    Keywords: Experimental Auctions, Willingness to pay, Consumers’ surplus, Choice alternatives, Food certification.
    JEL: C91 D44 Q51
    Date: 2015
  4. By: Moisescu, Ovidiu-Ioan
    Abstract: The paper investigates the extent to which the largest Romanian travel agencies, in terms of net turnover and profitability, adopt CSR practices. The analyzed data regards a set of relevant Romanian travel agencies, which during the last five years have been present at least once in an annual ranking regarding the highest net turnover and/or profits of such specialized businesses. In order to evaluate the level of CSR practices adoption in the investigated travel agencies, an online survey was conducted among their top managers mostly marketing managers (one respondent for each travel agency). The questionnaire was adapted based on the recent European Commission’s awareness-raising questionnaire regarding CSR, and comprised several sets of items reflecting employee and workplace policies, environmental policies, marketplace policies, community policies, and, respectively, company values and their dissemination among employees, customers, business partners and other stakeholders. The results of the current research show, on one hand, a relatively high engagement of the top Romanian travel agencies in certain CSR activities, but, on the other hand, a relatively low adoption of specific practices in some domains. Although the literature regarding the impact of perceived CSR in the tourism industry suggests a significant level of influence on corporate reputation and, indirectly, on consumers’ behavior, trust, loyalty and other important commercial aspects, the investigated travel agencies don’t seem to pay a high importance on communicating their CSR practices to customers, or to the general public. The paper also tries to correlate the results regarding the extent to which CSR practices are adopted and communicated with the financial/commercial performance in terms of turnover and profitability.
    Keywords: CSR policies; net turnover; net profit; tourism distribution; Romania
    JEL: M31
    Date: 2014–10
  5. By: Novelli, Francesco
    Abstract: Characteristic features of Information Technology (IT), such as its intrinsic modularity and distinctive cost structure, incentivize IT vendors to implement growth strategies based on launching variants of a basic offering. These variants are by design substitutable to some degree and may contend for the same customers instead of winning new ones from competitors or from an expansion of the market. They may thus generate intra-organizational sales diversion – i.e., sales cannibalization. The occurrence of cannibalization between two offerings must be verified (the detection problem) and quantified (the measurement problem), before the offering with cannibalistic potential is introduced into the market (ex-ante estimation) and/or afterwards (ex-post estimation). In IT markets, both detection and measurement of cannibalization are challenging. The dynamics of technological innovation featured in these markets may namely alter, hide, or confound cannibalization effects. To address these research problems, we elaborated novel methodologies for the detection and measurement of cannibalization in IT markets and applied them to four exemplary case studies. We employed both quantitative and qualitative methodologies, thus implementing a mixed-method multi- case research design. The first case study focuses on product cannibalization in the context of continuous product innovation. We investigated demand interrelationships among Apple handheld devices by means of econometric models with exogenous structural breaks (i.e., whose date of occurrence is given a priori). In particular, we estimated how sales of the iPod line of portable music players were affected by new-product launches within the iPod line itself and by the introduction of iPhone smartphones and iPad tablets. We could find evidence of expansion in total line revenues, driven by iPod line extensions, and inter- categorical cannibalization, due to iPhones and iPads Mini. The second empirical application tackles platform cannibalization, when a platform provider becomes complementor of an innovative third party platform thus competing with its own proprietary one. We ascertained whether the diffusion of GPS-enabled smartphones and navigation apps affected sales of portable navigation devices. Using a unit-root test with endogenous breaks (i.e., whose date of occurrence is estimated), we identified a negative shift in the sales of the two leaders in the navigation market and dated it at the third quarter of 2008, when the iOS and Android mobile ecosystems were introduced. Later launches of their own navigation apps did not significantly affect these manufacturers’ sales further. The third case study addresses channel cannibalization. We explored the channel adoption decision of organizational buyers of business software applications, in light of the rising popularity of online sales channels in consumer markets. We constructed a qualitative channel adoption model which takes into account the relevant drivers and barriers of channel adoption, their interdependences, and the buying process phases. Our findings suggest that, in the enterprise software market, online channels will not cannibalize offline ones unless some typical characteristics of enterprise software applications change. The fourth case study deals with business model cannibalization – the organizational decision to cannibalize an existent business model for a more innovative one. We examined the transition of two enterprise software vendors from on-premise to on-demand software delivery. Relying on a mixed- method research approach, built on the quantitative and qualitative methodologies from the previous case studies, we identified the transition milestones and assessed their impact on financial performances. The cannibalization between on-premise and on-demand is also the scenario for an illustrative simulation study of the cannibalization.
    Date: 2015–02–04
  6. By: Crawford, Gregory S
    Abstract: Television is the dominant entertainment medium for hundreds of millions. This chapter surveys the economic forces that determine the production and consumption of this content. It presents recent trends in television and online video markets, both in the US and internationally, and describes the state of theoretical and empirical research on these industries. A number of distinct themes emerge, including the growing importance of the pay-television sector, the role played by content providers (channels), distributors, and negotiations between them in determining market outcomes, and concerns about the effects of market power throughout this vertical structure. It also covers important but unsettled topics including the purpose for and effects of both the old (Public Service Broadcasters) and the new (online video markets). Open theoretical and empirical research questions are highlighted throughout.
    Keywords: advertising; bargaining; bundling; economics; foreclosure; market power; net neutrality; online video; pay television; public service broadcasting; television
    JEL: C72 D40 L32 L40 L50 L82 L86 M37
    Date: 2015–06
  7. By: Harrison, Sara
    Abstract: Although recurring sports events are held more frequently and by a larger number of cities than one-off events, little research has examined the branding process within large international recurring sports events, nor specifically within the New Zealand context. The research is based off Parent et al.’s (2012) model of brand creation in the context of the Sevens Wellington rugby tournament, which is held at Waitangi weekend in February each year in New Zealand. The research seeks to understand the broader issue of brand creation and brand identity for the tournament and aims to provide qualitative and empirical insights that will influence the continued evolution and strategic management of the brand. This research was conducted within a framework of qualitative exploratory methodology and employed an inductive method, incorporating case study research in the form of face-to-face interviews. Key implications and findings from the case data were then interpreted utilising Stafford Beer’s Viable Systems Model (VSM) as a framework to understand systemic functions, analyse and make sense of the data (Brocklesby & Cummings, 1996). A revised conceptual model of brand creation for the Sevens Wellington is then presented. The research findings have shown the relative importance of each factor in the creation of the Sevens Wellington brand and inform recommendations for the continued evolution of the brand. As a consequence, the NZRU and WRFU will be able to determine how best to create additional value through an enhanced understanding of Parent et al.’s (2012) model and systemic functions. The study has contributed to the literature of brand creation and has also revised Parent et al.’s (2012) model, specifically within the New Zealand and Rugby Sevens contexts. In addition, the study has also contributed to the sport specific event management knowledge and understanding within the New Zealand sport event management context in general.
    Keywords: Brand creation, International sports events, Brand identity, Viable Systems Model, Sevens Rugby,
    Date: 2014
  8. By: Dalbir Singh; M. R. P. Singh
    Abstract: Customer satisfaction is key to business success. There is a great deal of information being published today and discussed on the topic customer service and customer satisfaction. Proponents of these topics or approaches to conducting business tend to emphasize the importance of conforming to specifications, keeping processes in control, meeting requirements, giving customers what they want and handling complaints effectively. It is a simple truth. Satisfied customers do more business with you more often. They purchase more each time around, and they purchase more often. They also refer their family and friends to you. The link between sales, service, satisfaction and profits is direct. The more a customer is satisfied, the more he or she spends. The more customers spend, the more you sell. And usually, when you sell more, your profits are greater. The paper highlights the customer satisfaction in terms of company image, technical consultancy provided and customer services in Jindal Industries. Key words: Customer Satisfaction, Company Image, Consultancy, Customer Services
    Date: 2015–06
  9. By: Panizza, Janina
    Abstract: This research is an investigation into the scope and evaluation of corporate sponsorship relationships with performing arts organisations (PAOs). Based primarily on Relationship Theory, the aim of this research is to develop a framework for investigating strategic business-to-business marketing and development opportunities. The idea is to find a simple lens to explore ways to enrich the current sponsorship relationship beyond the dollars for tickets experience. This investigation is based on behavioural observations that are the result of a complex mix of variables from business and artistic environments. The phenomenological approach focuses on interpreting behaviours from each participants’ point of view and the interaction of those behaviours (Bryman & Bell, 2011, pp16-19). The method adopted was one of comparative case studies built on the experiences of multiple expert informants. Data was primarily collected through a series of semi-structured interviews covering both sides of the sponsorship relationship. In searching for existing best practice materials in current literature, it became evident that many of the approaches suggested by the studies strongly resembled dating. From this the Dating Analogy Model was developed (Appendix A). The findings of the interviews strongly correlate with the framework of the dating analogy following many of the same behaviours one would expect to find in any successful partnership. The key repeated themes were: • Research • Values congruence • Communication • Partnership • Investment of time • Regular evaluation This report finds that the Dating Analogy Model provides an opportunity to examine the interaction of each perspective. While transactional sponsorship arrangements appear to dominate, they also have elements that create deeper, enduring, high value engagements that strongly align with partnering relationship theory. How those relationships look varies according to the nature of the business of the sponsor, the nature of the interaction (in kind, cash or a combination), and the reasons for sponsoring that particular PAO. This report also shows that the high time component of relationship management needs to be balanced against the expected value of the gains. This report also acknowledges that the analysis conducted has limitations. Cost and time comparisons with other trust funding sources were not included in this study. It is also acknowledged that the validity of the Dating Analogy Model would benefit from practical application or a workshop exercise.
    Keywords: Sponsorship, Performing arts, Partnership,
    Date: 2014

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