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on Marketing |
| By: | Jean-Pierre Dubé; Xueming Luo; Zheng Fang |
| Abstract: | We empirically test an information economics based theory of social preferences in which ego utility and self-signaling can potentially crowd out the effect of consumption utility on choices. Two large-scale, randomized controlled field experiments involving a consumer good and charitable donations are conducted using a subject pool of actual consumers. We find that bundling relatively large charitable donations with a consumer good can generate non-monotonic regions of demand. Consumers also self-report significantly lower ratings of “feeling good about themselves” when a large donation is bundled with a large price discount for the good. The combined evidence supports the self-signaling theory whereby price discounts crowd out a consumer’s self-inference of altruism from buying a good bundled with a charitable donation. Alternative theories of motivation crowding are unable to fit the non-monotonic moments in the data. A structural model of self-signaling is fit to the data to quantify the economic magnitude of ego utility and its role in driving consumer decisions. |
| JEL: | C7 C72 C9 C93 D03 D11 D12 D8 D81 M3 M30 M31 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21475&r=all |
| By: | Pedro Bordalo; Andrei Shleifer |
| Abstract: | We present a model of market competition in which consumers? attention is drawn to the products? most salient attributes. Firms compete for consumer attention via their choices of quality and price. Strategic positioning of a product affects how all other products are perceived. With this attention externality, depending on the cost of producing quality some markets exhibit ?commoditized? price salient equilibria, while others exhibit ?de-commoditized? quality salient equilibria. When the costs of quality change, innovation can lead to radical shifts in markets, as in the case of decommoditization of the coffee market by Starbucks. In the context of financial innovation, the model generates the phenomenon of ?reaching for yield?. |
| URL: | http://d.repec.org/n?u=RePEc:qsh:wpaper:312541&r=all |
| By: | Hai, Le Chi; Alam Kazmi, Syed Hasnain |
| Abstract: | Advancements in online shopping for consumers requires consistent government support policies and the introduction of substantial government laws and regulations. In order to establish innovative developments in online shopping market environment that makes online shopping faster and stable, the government perspective is vital with the Technology Acceptance Model (TAM) for research and development in online shopping behavior for consumer’s confidence and their purchase intention. The proposed conceptual framework in the study establish that governments’ supports positively impact on perceived ease of online shopping, and positively influence consumer’s online shopping intentions. In addition, the study results are consistent to the empirical researches that focus on perceived ease of use and perceived usefulness that will affect consumer online shopping behavior. |
| Keywords: | government support, technology acceptance model, perceived usefulness, perceived ease of use, online shopping |
| JEL: | C3 H50 M1 M15 M38 |
| Date: | 2015–08–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:66027&r=all |
| By: | Luo, Yao (University of Toronto); Perrigne, Isabelle (Rice University); Vuong, Quang (NYU) |
| Abstract: | This paper proposes a methodology for analyzing nonlinear pricing data with an illustration on cellular phone. The model incorporates consumers exclusion. Assuming a known traffic, we establish identification of the model primitives using the first-order conditions of both the firm and the consumer up to a cost parameterization. Next, we propose a new one-step quantile-based non-parametric method to estimate the consumers inverse demand and their type distribution. We show that our nonparametric estimator is the square root of N-consistent. We then introduce unobserved product heterogeneity with an unknown tariff. We show how our identification and estimation results extend. Our analysis of cellular phone consumption data assesses the performance of alternative pricing strategies relative to nonlinear pricing. |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:riceco:14-003&r=all |
| By: | Catherine Araujo Bonjean (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Université d'Auvergne - Clermont-Ferrand I); Jean-François Brun (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | The aim of this paper is to explore the channels of transmission of the fluctuations in the world price of cocoa to the consumer of chocolate bars in France. This case study can be considered as an illustration of a more general pattern of asymmetric vertical price transmission in the commodity-final product chain. Two types of asymmetry are suspected: asymmetry in the transmission of positive and negative shocks that may reflect non-competitive behavior in the chocolate industry and asymmetry in the transmission of small and large shocks that may be due to adjustment costs. These hypotheses are tested using a three-regime error correction model. Results show that adjustment costs in the processing, manufacturing and distribution of the chocolate tablet are important. Moreover, increases in the cocoa price are more fully and rapidly transmitted to consumers than decreases. These findings may be interpreted as the manifestation of the market power of chocolate companies. |
| Date: | 2014–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01074157&r=all |
| By: | Sonja Brangewitz (University of Paderborn); Claus-Jochen Haake (University of Paderborn); Philipp Moehlmeier (Bielefeld University) |
| Abstract: | We analyze the stability of networks when two intermediaries strategically form costly links to customers. We interpret these links as customer relationships that enable trade to sell a product. Equilibrium prices and equilibrium quantities on the output as well as on the input market are determined endogenously for a given network of customer relationships. We investigate in how far the substitutability of the intermediaries' products and the costs of link formation influence the intermediaries' equilibrium profits and thus have an impact on the incentives to strategically form relationships to customers. For networks with three customers we characterize locally stable networks, in particular existence is guaranteed for any degree of substitutability. Moreover for the special cases of perfect complements, independent products and perfect substitutes, local stability coincides with the stronger concept of Nash stability. Additionally, for networks with n customers we analyze stability regions for selected networks and determine their limits when n goes to infinity. It turns out that the shape of the stability regions for those networks does not significantly change compared to a setting with a small number of customers. |
| Keywords: | Network Formation, Product Differentiation, Oligopoly, Quantity Competition |
| JEL: | C70 D43 D85 L13 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:pdn:ciepap:91&r=all |
| By: | Konrad Hurren |
| Abstract: | The pricing of television is taken as given in New Zealand. But internationally, regulators and competition authorities have begun to think about the effects that different pricing structures have on viewers and competition in television markets. Konrad Hurren outlines a pricing structure known as bundling, explains why firms use it, and ponders what it means for television viewers and content providers. |
| Date: | 2013–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:vuw:vuwcrt:380002&r=all |
| By: | Rémi Mencarelli (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie); Arnaud Riviere (CERMAT - Centre d'Études et de Recherche en MAnagement de Touraine - Institut d'Administration des Entreprises (IAE) - Tours) |
| Abstract: | The participation of the customer in a self-service technologies context. An approach by the perceived value Firms develop many technological devices allowing consumers to produce services (Self-Service Technologies - SST). However, by substituting themselves for employees, the participation of buyers in the servuction process can affect their consumer experience. Having stressed the potential contributions of the notion of perceived value, a qualitative study is carried out and allows identifying the sources of creation and destruction of value of an SST. These have both similarities and specificities with the perceived value of traditional services. |
| Abstract: | Les entreprises développent massivement les dispositifs technologiques permettant aux consommateurs de produire des offres de services (Self-Service Technologies – SST). Cependant, en se substituant aux employés de l’organisation, la participation active de l’acheteur dans le processus de servuction n’est pas sans effet sur son expérience de consommation. Après avoir mis en avant les apports potentiels d’une approche par la valeur perçue, une étude qualitative identifie les sources de création et de destruction de valeur des SST. Ces dernières présentent à la fois des similarités et des spécificités par rapport aux éléments de valorisation des services traditionnels. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01153113&r=all |
| By: | Seabold,Skipper; Coppola,Andrea |
| Abstract: | The objective of this study is to assess the possibility of using Internet search keyword data for forecasting price series in Central America, focusing on Costa Rica, El Salvador, and Honduras. The Internet search data comes from Google Trends. The paper introduces these data and discusses some of the challenges inherent in working with it in the context of developing countries. A new index is introduced for consumer search behavior for these countries using Google Trends data covering a two-week period during a single month. For each country, the study estimates one-step-ahead forecasts for several dozen price series for food and consumer goods categories. The study finds that the addition of the Internet search index improves forecasting over benchmark models in about 20 percent of the series. The paper discusses the reasons for the varied success and potential avenues for future research. |
| Keywords: | E-Business,Economic Theory&Research,Statistical&Mathematical Sciences,Information and Communication Technologies |
| Date: | 2015–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7398&r=all |