nep-mkt New Economics Papers
on Marketing
Issue of 2015‒08‒01
twenty papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Evaluating the Marketing Impact of a Regional Branding Program Using Contingent Valuation Methods: The Case of the Appalachian Grown™ Branding Program By Carpio, Carlos E.; Mathews, Leah G.; Boonsaeng, Tullaya; Perrett, Allison; Descieux, Katie
  2. Substitution between Online and Offline Advertising: Evidence from the Carbonated Soft Drink Industry By He, Xi; Lopez, Rigoberto A.; Liu, Yizao
  3. Consumers' Willingness to Pay for Bioplastic Plant Containers: An Experimental Auction Approach By Ellison, Brenna; Kirwan, Barrett; Nepal, Atul
  4. Consumer preferences for meat: self-service counter or service counter? By Weinrich, Ramona; Kühl, Sarah; Franz, Anabell; Spiller, Achim
  5. Self-Consumption, Gifting, and Chinese Wine Consumers By Qing, Ping; Hu, Wuyang
  6. Consumers’ Willingness to Pay for Seafood Attributes: A Multi-species and Multi-state Comparison By Meas, Thong; Hu, Wuyang
  7. Assessment of Consumer Awareness and Preferences for Quality Certification and Origin-Labeling in Fruit Salads in Kigali,Rwanda By Uwamariya, Beatrice
  8. Innovation and Marketing Strategies for GI Products: The Case of Parmigiano Reggiano Cheese as Ingredient By Mancini, Mariacecilia; Consiglieri, Claudio
  9. What the Adoption Literature can teach us about Social Media and Network Effects on Food Choices By Zilberman, David; Kaplan, Scott
  10. Why Local Food Matters: The rising importance of locally-grown food in the U.S. food system By Tropp, Debra
  11. Expressing Individuality via Food Choices By Weaver, Amanda S.; Lusk, Jayson
  12. Impact of Chinese acquisition of a US Company on Consumer Willingness to Pay By Zhang, Yu Yvette; Palma, Marco A.; Jin, Shaosheng
  13. Measuring consumer heterogeneous preferences for pork traits under media reports: choice experiment in sixteen traceability pilot cities, By Yan, Zhen; Zhou, Jie-hong; Li, Kai
  14. Are all GMO’s the same? Consumer acceptance of cisgenic rice in India By Shew, Aaron M.; Nalley, Lawton L.; Danforth, Diana M.; Dixon, Bruce L.; Nayga, Rodolpho M. Jr; Delwaide, Anne-Cecile
  15. Reputation and Pricing on the e-Market: Evidence from a Major French Platform By Grégory Jolivet; Bruno Jullien; Fabien Postel-Vinay
  16. A look at the variations in consumer preferences for farmers' markets attributes By Neill, Clinton L.; Mitchell, Donna M.; Williams, Ryan B.
  17. Impacts of Marketing Costs on Supply Chains in Tanzania By Musumba, Mark; Costa, Rafael F.
  18. Growing Markets for U.S. Tree Nuts By Morecraft, Bill
  19. Digital piracy and the perception of price fairness By Michal Krawczyk; Anna Kukla-Gryz; Joanna Tyrowicz
  20. Shelton’s Poultry: A Business Strategy Case Study By Phillips, Jon C.; Lehan, Benjamin; Gomez, Abraham; Martin, Cesar; Nolasco, Soraya; Rosales, Chastity; von Helms, Bryce; Wu, Dennis

  1. By: Carpio, Carlos E.; Mathews, Leah G.; Boonsaeng, Tullaya; Perrett, Allison; Descieux, Katie
    Abstract: The main objective of this study was to develop and test effective messaging and marketing efforts for the Appalachian Grown™ regional branding program. The evaluation of the impact of the marketing efforts utilizes contingent valuation (CV) methods. CV methods allowed us to elicit consumers’ preferences before and after the marketing campaign for Appalachian grown products and measure the change in consumer willingness to pay (WTP) for this attribute. We found evidence of a statically significant positive effect in one of the two stores where the campaign was implemented. In the store where the campaign was found to have a positive impact, the marketing campaign was found to increase consumers’ willingness to pay for locally grown products by about 4%. Our results indicate that consumers’ willingness to pay may be positively impacted by the implementation of in-store local food marketing campaigns.
    Keywords: Local foods, willingness to pay, censored regression, Agribusiness, Demand and Price Analysis, Marketing, D12, M31, M37,
    Date: 2015–05–27
  2. By: He, Xi; Lopez, Rigoberto A.; Liu, Yizao
    Abstract: As in previous studies on traditional media, previous work has assumed that online and offline advertising are substitutes. However, empirical evidence for this premise is lacking. This paper investigates the substitution between online advertising and offline advertising as well as the impact of the introduction of new media technology on the cost of advertising. Using a rich dataset of monthly observations for 52 carbonated soft drink brands between 2005 and 2011, we estimate a translog cost function that considers the mix of on/off line advertising and online advertising adoption at the brand level. As in previous work, we find that TV and print media are close substitutes. Surprisingly, however, we find that online advertising is a complement to rather than a substitute for both TV and print media advertising. This might be explained by online advertising’s targeting younger market segments and acting as a reinforcement of TV and print media advertising exposure. Further results show that the adoption of online advertising has lowered the cost of advertising for achieving a sales target but that its role as a complement rather than a substitute is weakening.
    Keywords: Online advertising, media substitution, translog cost function, CSDs, Agricultural and Food Policy, Marketing, L13, M37, D12,
    Date: 2015
  3. By: Ellison, Brenna; Kirwan, Barrett; Nepal, Atul
    Abstract: This study elicites consumers' willingness to pay for an environmentally sustainable good that might not typically be purchased on its own. We isolate the value of these perfectly-complementary, auxiliary goods by endowing consumers with the complete good and giving them the opportunity to pay to upgrade the auxiliary component of the good. We employ a Becker-Degroot-Marschack auction design in a market setting to determine consumers' actual willingness to pay for the auxiliary good. We find consumers are willing to pay a $0.67--$1.12 premium for a bioplastic plant container over a traditional plastic one.
    Keywords: bioplastics, specialty crop containers, experimental auctions, consumer willingness to pay, Agribusiness, Demand and Price Analysis, Marketing, Research Methods/ Statistical Methods, M31, Q21, D44,
    Date: 2015–05–27
  4. By: Weinrich, Ramona; Kühl, Sarah; Franz, Anabell; Spiller, Achim
    Abstract: Many people view animal welfare standards in the agricultural industry as critical and some consumers would prefer to buy high welfare meat. In order to successfully introduce high welfare meat products onto the market, some important marketing decisions must be made. Due to limited shelf space, niche products like high welfare meat cannot be placed both at the self-service counter and at the service counter. In order to analyze where to place it best an online survey of 642 German consumers was conducted. By means of factor and cluster analyses, consumers’ animal welfare attitudes and their preference for a point of purchase were combined. The different target groups were combined using cross tabulation analysis. The results show that consumers in the target group show a more positive attitude to the service counter.
    Keywords: Service counter, self-service counter, retail, animal welfare, consumer research, Agribusiness,
    Date: 2015–05
  5. By: Qing, Ping; Hu, Wuyang
    Abstract: Chins is the world largest red grape wine consuming country. Using data from a recent survey conducted in three diverse cities in China, this study examines Chinese consumers’ expenditure and preferences for wine for both self-consumption and gifting. Results indicate that in addition to price, Chinese consumers looked for other wine attributes such as brand and color but there are significant regional differences in wine preference and expenditure. On average, Chinese spend more on gift wines than for their own consumption. Increase in self-consumption contributed significantly to increases in gifting but the reverse effect was much weaker. Factors contributing to self-consumption and gifting are different and sometimes the effects were completely opposite such as consumers’ experiences with wine, the role of wine advertisement, and the occasions when wine was consumed. Implications are drawn for wine standards and classification policies and for wine producers and marketers in China as well as around the world.
    Keywords: China, expenditure, gift, regional, self-consumption, wine, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing, Q13,
    Date: 2015
  6. By: Meas, Thong; Hu, Wuyang
    Abstract: This study surveys consumers’ perception of issues in seafood consumption and production and uses choice experiments to investigate consumer preference for the most consumed fish species. Results suggest that consumers were willing to pay positive premiums for fish from U.S. domestic origin and eco-friendly production practices. They were also willing to pay more for fish raised locally and fed with only natural vegetable based feeds. However, for two of the three species examined, there were no premiums found for fresh fish as compared to previously frozen fish. Importantly, comparing wild-caught to farm-raised seafood, the study found no positive willingness to pay, signaling higher acceptance of fish from aquaculture production over time.
    Keywords: Consumer Preferences for Seafood, Wild-Caught, Aquaculture, Willingness to Pay, Choice Experiment, Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing, Q13,
    Date: 2014–02–04
  7. By: Uwamariya, Beatrice
    Abstract: Consumers worldwide are increasingly becoming more concerned and aware about food standards, quality and safety issues. Developing countries including Rwanda have shown poor food quality and considerable deficiencies in vitamins; however, consumption of healthy and inspected fruit salads is among solutions to overcome these problems. Although Rwanda food policies have established regulations in food industry, no empirical evidence exists on consumers’ preferences for fruit salad quality specifically for quality certification and origin labeling. This study was conducted in Kigali city and assessed the factors influencing the awareness on origin labeling and consumers’ preferences for fruit salads quality through semi-structured questionnaires, from 360 randomly selected fruit salad consumers.Descriptive statistics were used in the characterization of fruit salads consumption. In addition, a binomial logit was applied to assess the factors that influence awareness on origin labeling, while choice experiment (CE) approach and multinomial logit (MNL) were applied to elicit consumer’s preferences for fruit salad attributes. Results show that the majority of fruit salads in Rwanda are not certified and non-labeled, and they are only consumed on occasional basis. The main factors that were found to have influence on awareness on origin labeling are residential area, place of purchase, reading of labels and levels of education. Further, consumers had positive preferences for organic fruit salads and inspection of vendor’s health. They also had higher positive preferences for fruit salads that comprise vitamins A, C and fats. In addition, consumers had higher preferences for imported than domestic fruit salads, and they had higher preferences for private certification. These results provide useful insights to nutrition policy on encouraging fruit salads consumption and enhancing consumer education on their quality. Further, the findings would guide health sector policy on effective monitoring and regulation of fruit salad sale to ensure safe trading of such foods.
    Keywords: Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2014–07
  8. By: Mancini, Mariacecilia; Consiglieri, Claudio
    Keywords: GIs, TTIP, IPRs, Parmigiano Reggiano PDO, Grana Padano PDO, Food Processing, Food Consumption/Nutrition/Food Safety, Industrial Organization, International Relations/Trade, Marketing,
    Date: 2015–04
  9. By: Zilberman, David; Kaplan, Scott
    Abstract: Decisions about food choices in terms of products, preparation, and venue are technology choices in the context of the household production function where consumers consider benefits from taste, health, convenience, and budget given different technologies and information. The literature on adoption in economics and marketing as well as the literature on information sources in food decision-making provides a context to assess the impact of new information and new media on food choices. This literature suggests that consumers use media for identifying information relevant to their decisions, but make final assessments based on total benefits and the probability of fit of a product in meeting their needs. Consumers rely on both formal and informal sources of information in making different choices, and electronic social networks improve the quality of and help more effectively target information from formal sources, but especially information from informal sources. Informational networks expand access of visual information to consumers when making food choices, and allow real-time interaction among consumers that enables them to be more informed about these decisions. Finally, food providers will recognize the role of electronic social networks and new media in food choices, and thus may use them to influence consumers’ food selection.
    Keywords: Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies,
    Date: 2014–05
  10. By: Tropp, Debra
    Abstract: What do we know about US local food demand? Overview of national statistics Importance of local food demand to food system—national vs. regional Changing buyer and consumer preferences  Growth of local food marketing outlets  Farmers markets  CSAs  Food hubs  Is there room for future growth in local food demand? If so, what will it look like? USDA 2007 Census of Agriculture: Direct to consumer food sales (defined narrowly as D2C sales of “edible farm products for human consumption) increased threefold from 1992 - 2007 Vegetable, fruit, and nut farms dominate local food sales.  Direct-to-consumer sales dominate where climate and topography favor  fruit and vegetable production  proximity to farmers markets and neighboring local food farms  access to transportation information networks.  Value of local food sold is highest in metropolitan areas and is geographically concentrated in the Northeast and on the West Coast. $404 million to $1.2 billion • Grew twice as fast as total agricultural sales in U.S. (105% vs. 48%) USDA-ERS report on Direct and Intermediated Local Food Sales (Vogel and Low, 2011) based on 2008 Agricultural Resource Management Survey Local food sales were estimated to be $4.8 billion in 2008 •Included intermediated sales of local food to retailers, restaurants, institutions, food service distributors + direct to consumer sales New 2012 Census of Agricultural statistics on local food to be released in February 2014 – will delineate between local food sales to intermediaries, CSAs, and other direct to consumer outlets What Do We Know About Demand? 4th
    Keywords: local food, marketing, farmers market, CSA, fruit, vegetable, Agricultural and Food Policy, Agricultural Finance, Marketing,
    Date: 2013–10
  11. By: Weaver, Amanda S.; Lusk, Jayson
    Abstract: A new means to the end of expressing one’s identity or individuality has grown in popularity in recent years; food is much more to consumers than the basic physiological needs of food. Consumers have diversified into a wide range of food personality types with different perceptions of the role food should play in their lives. This paper uses factor analysis and compares these food personality factors with food attributes factors consisting of non-price features of food products. Results show that identity is expressed via food at differing levels and income level does have some influence.
    Keywords: identity, food personality, food attributes, hierarchy of needs, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics,
    Date: 2014
  12. By: Zhang, Yu Yvette; Palma, Marco A.; Jin, Shaosheng
    Abstract: In this study, we explore how the acquisition of Smithfield, the world’s larger pork producer, by a Chinese firm Shuanghui, on consumers’ WTP to meat product using experimental auctions. Our results indicate that the acquisition benefits Shuanghui in particular and other Chinese firms in general in terms of consumer’s willingness to pay. On the other firms, the general impacts on US firms might be negative, probably due to expected lower price or reduced perceived difference between domestic and imported meat products.
    Keywords: Merging & Acquisition, Multinational business, Consumer Willingness to Pay, Experiments, Auctions, Agribusiness, Consumer/Household Economics, Marketing, JEL Codes: C91, D44, D12, F23, Q13,
    Date: 2015
  13. By: Yan, Zhen; Zhou, Jie-hong; Li, Kai
    Abstract: The absence of original information in traceability system is the major risk to pork safety in China. An increasing number of recent media reports on pork safety problems at source have attracted great attention and thought to be a growing threat to risk perception amplification on pork safety, even leading to public panic. Understanding how people react to media report is essential to enhance pork quality management, and the design of effective information dissemination policy. This paper was among the first to explore the impact of media report about potential benefits and risk of traceability on consumer utility valuation and preference heterogeneities for select pork traits. By capturing key issues from online media reports in last three years both on benefit (positive group) and risk (negative gourp) of traceability as information shock showed to interviewees, we investigate willingness to pay from 788 consumers across sixteen traceability pilot cities, China. A orthogonal factorial design was employed, which resulted in twelve choice sets based on four two-level traits including information source (farmer or slaughter info.), production (free or captive range), brand (have or not), certificate (have or not), and three-level price. The mixed logit and latent class models are employed to examine preferences heterogeneity by using 28368 choice samples. The findings indicate that consumers value certification more than other pork traits, while only preference on farmerinfo labeling significantly imcreases in negative information group. Highly valued farmerinfo and free range labeling in same class from positive information shock, while consumer preference for free range in one class from negative group. The results suggests existence of preference heterogeneity based on two aspects of media report. Considering heterogeneity within population segments provides a framework for adapting information dissemination to react in food crisis for firm managers, and to improve pork product labeling policy interventions for food supervisors by integrating preferred pork traits in a traceability system.
    Keywords: Media report, Preference heterogeneity of pork traits, Choice experiments, Mixed logit and latent class model, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics,
    Date: 2015
  14. By: Shew, Aaron M.; Nalley, Lawton L.; Danforth, Diana M.; Dixon, Bruce L.; Nayga, Rodolpho M. Jr; Delwaide, Anne-Cecile
    Abstract: India has more than 215 million food insecure people, many of whom are farmers. Genetically modified (GM) crops have the potential to alleviate this problem by increasing food supplies and strengthening farmer livelihoods. For this to occur, two factors are critical: (1) a change in the regulatory status of GM crops, and (2) consumer acceptance of GM foods. There are generally two classifications of GM crops based on how they are bred: cisgenically-bred, derived from sexually compatible organisms, and transgenically-bred, derived from sexually incompatible organisms. Consumers may view cisgenic foods as more natural than those produced via transgenesis, thus influencing consumer acceptance. This premise was the catalyst for our study—would Indian consumers accept cisgenically-bred rice and if so, how would they value cisgenics compared to conventionally-bred rice, GM-labeled rice, and “no fungicide” rice? In this willingness-to-pay study, respondents did not view cisgenic and GM rice differently. However, participants were willing-to-pay a premium for any aforementioned rice with a “no fungicide” attribute, which cisgenics and GM could provide. Lastly, 76% and 73% of respondents stated a willingness-to-consume GM and cisgenic foods, respectively.
    Keywords: cisgenesis, GMO, food security, India, rice, Agricultural and Food Policy, Community/Rural/Urban Development, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Development, Marketing,
    Date: 2015
  15. By: Grégory Jolivet (Centre d'économie de la Sorbonne); Bruno Jullien (Toulouse School of Economics (TSE)); Fabien Postel-Vinay (Departement d'Economie de Sciences Po)
    Abstract: We use an exhaustive data set from one of France's largest e-commerce platforms,, to estimate a statistical causal effect of a seller's reputation (and size) on transaction prices for a large range of product categories (books, CDs, video games or DVDs), product conditions (used or new) and seller types (individual or professional sellers). We go beyond the results currently available by tackling the issue of seller unobserved heterogeneity and the dynamics of reputation (and size) in price equations. Our results show large-scale empirical evidence of a significant, positive and strong effect of seller reputation on prices.
    Keywords: e-Market; e-Commerce platform; Reputation; Price
    Date: 2014–05
  16. By: Neill, Clinton L.; Mitchell, Donna M.; Williams, Ryan B.
    Abstract: The purpose of this study is to determine the effects of physical attributes of farmers’ markets on a customer’s willingness to attend a particular market. It was found that ease of movement between vendors is the most important attribute while the least important is the availability of seating.
    Keywords: Farmers' market, choice based survey, consumer preference, Consumer/Household Economics,
    Date: 2014
  17. By: Musumba, Mark; Costa, Rafael F.
    Keywords: Agribusiness, Agricultural and Food Policy, Marketing,
    Date: 2015–05–27
  18. By: Morecraft, Bill
    Keywords: Agricultural and Food Policy, Marketing,
    Date: 2015–02–19
  19. By: Michal Krawczyk (Faculty of Economic Sciences, University of Warsaw); Anna Kukla-Gryz (Faculty of Economic Sciences, University of Warsaw); Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland)
    Abstract: We focus on the relationship between pricing of cultural goods and willingness to download their unauthorized versions. Building on equity theory we propose that perceiving a price as overly high provides a self-justification for downloading content from unauthorized sources. In a large-scale online experiment on customers of a major e-book store we employ the Bayesian Truth Serum to induce truthful confessions of acquiring content from unauthorized sources. We confirm that self-reported downloading from unauthorized sources is associated with having experienced overpricing. We also relate it to endorsing relatively positive views on the role of file-sharing services and believing that "pirate's" motives are relatively principled, while those of abstainers are rather pragmatic.
    Keywords: inequality, longevity, defined contribution, defined benefit, Gini
    JEL: A13 C93 D12
    Date: 2015
  20. By: Phillips, Jon C.; Lehan, Benjamin; Gomez, Abraham; Martin, Cesar; Nolasco, Soraya; Rosales, Chastity; von Helms, Bryce; Wu, Dennis
    Keywords: Poultry, Michael Porter's Value Chain, Agribusiness, Agribusiness, Marketing,
    Date: 2015–03–01

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