nep-mkt New Economics Papers
on Marketing
Issue of 2015‒08‒25
ten papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Consumer responses to elimination of overpackaging on private label products By Elisa Monnot; Fanny Reniou; Béatrice Parguel
  2. Alternative food networks and local markets: determinants of consumers’ choices between conventional and farmers’ stands By Novelli, Silvia; Corsi, Alessandro
  3. Back to Order: How to Preserve Future Brand Purchase Intentions When Things Go Wrong? By Jamel Khenfer
  4. Religious Responses to “Selling Happiness”: Consequences for Attitude toward the Ad and the Advertised Brand By Jamel Khenfer; Steven Shepherd; Aaron Kay
  5. Advertising Competition in the French Free-To-Air Television Broadcasting Industry By Ivaldi, Marc; Zhang, Jiekai
  6. Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game By Maxime Agbo; Damien Rousselière; Julien Salanié
  7. Petroleum Product Pricing, Deregulation and Subsidies in Ghana: Perspectives on Energy Security By Acheampong, Theophilus; Ackah, Ishmael
  8. Auctioneer Versus a Dominant Bidder: Evidence from a Cattle Auction By Coatney, Kalyn; Harri, Ardian
  9. Free-Riding and Luxury Brands on the Internet By Olivier Bomsel
  10. Why airports can face price-elastic demands: margins, lumpiness and leveraged passenger losses By David Starkie; George YARROW

  1. By: Elisa Monnot (THEMA - Université de Cergy Pontoise); Fanny Reniou (IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - UPEM - Université Paris-Est Marne-la-Vallée); Béatrice Parguel (DRM - Dauphine Recherches en Management - CNRS - Université Paris IX - Paris Dauphine)
    Abstract: Purpose – Eliminating overpackaging is a central question in sustainable development, and poses a dilemma for retailers. Since packaging is a differentiation tool for private labels, eliminating it could limit the capacity to give those labels an equivalent image to national brands just as much as it could be a sustainable development opportunity and a positioning instrument. Drawing on the attribution theory framework, this article examines how eliminating overpackaging influences consumers’ perception of products sold under generic and mimic private labels, and their purchase intention. Methodology – This research uses a 2 (overpackaging: present vs. absent) x 2 (brand concept: generic vs. mimic private label) between-subjects experiment on a convenience sample of 217 French consumers. The conceptual framework was tested using ANCOVA and mediation analyses. Findings – Our experiment shows that eliminating overpackaging does have an influence on mimic private labels’ image, particularly on perceived quality, convenience and environmental friendliness. We also find that this influence negatively transfers to purchase intention for mimic private labels through lower perceived quality and convenience. No such effect appears for generic private labels’ image. Value – This study addresses an issue as yet unexplored in marketing – the effect of overpackaging on private label products – and proposes areas for managerial and societal reflection relevant to retail chains interested in eliminating overpackaging.
    Date: 2014–10–22
  2. By: Novelli, Silvia; Corsi, Alessandro
    Abstract: Direct purchases are a widespread and important typology of the so-called Alternative Food Networks. Within this channel, farmers’ markets represent a popular and deeply investigated farmer-to-consumer market segment. While farmers’ markets are a quite recent initiatives, it is traditional to find in many towns in Italy both conventional stands and farmers’ stands selling fruit and vegetables in the same district market. We therefore analyse the behavioural characteristics of local market consumers choosing to purchase from farmers in order to point out the determinants of their choice. The consumers’ preferences were assessed through an in-person survey. Data were collected interviewing consumers in open-air markets in Torino, Cuneo, Alessandria and Asti, four cities in Piedmont Region (Italy) where farmers sell their products. The determinants of the choice to buy from farm stands were analysed with a probit model using a final sample of 1,138 respondents. Explanatory variables comprise the consumers’ general attitudes towards the purchase of food (importance given to convenience, price, quality and trust) and their personal characteristics. Also, other variables were added in order to highlight the possible role of markets and areas with distinctive characteristics. The most important factor affecting consumers’ choice for farm stand is the quest for quality. Consumers with a strong interest in quality are significantly more likely to buy from farmers. Among the personal characteristics, being the household member in charge of buying fruits and vegetables, and education, are the main determinants of the choice of farmers’ stands. On the contrary, the effects of variables such as income and job skill level are not clear enough,and seem to be open to different interpretations.
    Keywords: Alternative Food Networks, direct purchase, consumers’ choices, Agricultural and Food Policy, D4, Q13,
    Date: 2015–06
  3. By: Jamel Khenfer (AMU IAE - Institut d'Administration des Entreprises (IAE) - Aix-en-Provence - AMU - Aix-Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - Université Paul Cézanne - Aix-Marseille 3 - AMU IAE - Institut d'Administration des Entreprises (IAE) - Aix-en-Provence - AMU - Aix-Marseille Université - AMU - Aix-Marseille Université)
    Abstract: A passenger who misses an appointment because of unexpected delays on train services. An online shopper unable to wear the outfit s/he ordered for a long-awaited date because it doesn’t fit. Anecdotal observations of consumers unable to carry their goals because of uncontrollable events raise the question of their persistence to purchase the brand involved in such goal failures. This research emphasizes the moderating role of beliefs that the world is an ordered and non-random place on future brand purchase intentions in the face of goal failure.
    Date: 2015–02–26
  4. By: Jamel Khenfer (AMU - Aix-Marseille Université); Steven Shepherd (Duke University (Durham, USA)); Aaron Kay (Duke University (Durham, USA))
    Abstract: Many brands sell their products with the promise that the consumer will experience happiness. Intuitively, appealing to people's desire to be happy should be universally well received. In two studies, we show that it is not necessarily the case by examining the moderating role of consumer religiosity. We further show that the moderating role of religiosity on how people respond to these kinds of ads depends (1) on the motivational foundations of religious activity (intrinsic vs. extrinsic), and (2) on the salience of one’s religiousness at the time of ad exposure.
    Date: 2015–02–26
  5. By: Ivaldi, Marc; Zhang, Jiekai
    Abstract: This paper investigates empirically the advertising competition in the French free TV broadcasting industry in a two-sided framework. We specify a structural model of oligopoly competition of free TVs, and identify the shape and magnitude of the feedback loop between the TV viewers and the advertisers using French market data from March 2008 to December 2013. We contribute to the literature by implementing a simple procedure to test the conduct of TV channels, and identify that the nature of competition is of Cournot type on the French TV advertising market. In line with a decision of French anti-trust authority in 2010 which authorized the acquisition of two free broadcasting TV channels by a big media group under behavioral remedies, a series of competitive analysis has been conducted: We find firstly that the surpls of TV viewers keep raising after the decision of acquisition, suggesting that the implemented policy has been efficient in protecting the consumer surplus; Then, we find, by counterfactual simulation, that the merger of advertising agencies would not affect importantly the equilibrium outcomes in this industry, due to the strong network externalities between the TV viewers and the advertisers.
    Keywords: advertising; behavioral remedies; competition; market conduct; media; TV; two-sided market
    JEL: D22 D43 K21 L11 L13 L22 L41 M37
    Date: 2015–08
  6. By: Maxime Agbo (African School of Economics); Damien Rousselière (AGROCAMPUS OUEST [Le Rheu] - UR1 - Université de Rennes 1, Granem - Groupe de Recherche ANgevin en Economie et Management - UA - Université d'Angers - Agrocampus Ouest - Institut National de l'Horticulture et du Paysage); Julien Salanié (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - CNRS)
    Abstract: We build a theoretical model to study a market structure of a marketing cooperative with direct selling, in which many farmers are members of an agricultural marketing cooperative. They can sell their production either to the cooperative or on an oligopolistic local market. We show that the decision to sell to the cooperative induces an anti-competitive effect on the direct selling market. The cooperative facilitates collusion on the local market by making farmers softer competitors on that market. Conversely, direct selling may create a "healthy emulation" among farmers, leading to more production benefiting the cooperative.
    Date: 2015
  7. By: Acheampong, Theophilus; Ackah, Ishmael
    Abstract: This paper reviews Ghana’s recent experience with downstream petroleum products pricing and deregulation and looks at its implications for the nation’s energy security needs. The Government of Ghana in June 2015 put in place a deregulation policy that had the expectation of allowing marketers and importers of petroleum products to sell directly to consumers by setting their own prices. The policy has the primary objective bring an end to government subsidies on the product which arises in from exchange rate losses and consumer subsidies. The study welcomes government’s decision to revert to the competitive market forces using automatic price formulation as this removes implicit subsidization and its distortionary effects on the economy. With the advent of full deregulation, the burden of managing forex risks will shift from the government to the BDCs and TOR, and any such losses will become their prerogative. Petroleum subsidies, if any, should be redesigned and better targeted at the poor in the form of direct cash transfers as well as entrepreneurial skills training to improve their social and living conditions. Subsidies create distortionary effects and further exacerbate fiscal pressures as government has to borrow or tap into its reserves to offset price differentials.
    Keywords: Downstream Markets, Petroleum Products Pricing, Deregulation, Energy Security.
    JEL: Q3 Q31 Q38 Q4 Q40 Q48
    Date: 2015–08–02
  8. By: Coatney, Kalyn; Harri, Ardian
    Keywords: Industrial Organization, Marketing, D44, L51, Q13,
    Date: 2015
  9. By: Olivier Bomsel (CERNA - Centre d'économie industrielle - MINES ParisTech - École nationale supérieure des mines de Paris)
    Abstract: Luxury is a complex industrial activity whose products combine strong vertical differentiation and a meaning value for the consumer. Luxury offers experiences, the economy of which is based on signalling. This gives rise to intense intangible investment internalized by trademark law and vertical restraints in distribution. However, the extent of the added value and the power of externalities associated with communication generate many sources of free-riding. Using the tools of industrial economics, this article analyses how the digitization of information and transactions creates new forms of free-riding in relation to luxury brands. Identifying vertical disintegration as a major source of free-riding, it calls for improved internalization of the enforcement of trademark law by all players in the digital value chain.
    Date: 2014
  10. By: David Starkie; George YARROW
    Abstract: The extent to which firms face price-elastic demands for their products is important in the application of competition law and in judgments made as to whether they have significant market power. In the context of the airport industry, assessing price-elasticities is complicated by the fact that one major type of consumer of airport services, the air passenger, is not charged directly for use of terminals and airside infrastructure. Instead, the airport derives its revenues from charges to airlines and from the supply of non-aeronautical services. The charges to airlines then become one of many input costs that the airlines recoup from passenger fares, and this intermediation has significant implications for the demand analysis.
    Date: 2013–12–05

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