nep-mkt New Economics Papers
on Marketing
Issue of 2015‒09‒26
seven papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. A Study of Green Marketing Practices in the Food Processing Industry of India By Farheen Khan; SHAMIM AHMAD
  2. Too Much Attention on Low Prices? Loss Leading in a Model of Sales with Salient Thinkers By Inderst, Roman; Obradovits, Martin
  3. Competition and Consume Choice in Option Demand Markets By Gilad Sorek
  4. Strategic Marketing in Higher Education from Alumni Perspective By Petr Svoboda; Monika Harantova
  5. A user perspective on contrasting factors of contactless mobile payments adoption By Mihail Cocosila; Houda Trabelsi
  6. Consumer’s Willingness to Pay for Gasohol E100 in Chiang Mai Province and Nakhon Ratchasima Province. By Pacharaporn Arkornsakul; Woraphon Yamaka; Sombat Singkharat
  7. Brand Valuation Practices of Small and Medium-Sized Enterprises in the Czech Republic By Monika Harantova; Petr Svoboda

    Abstract: : Green marketing initiatives focus on the values and efforts that various companies incorporate into their marketing portfolio. The practice is driven by environmentally-conscious-consumers, who demand eco-friendly, healthy and sustainable products and services from organizations that they perceive to be socially-responsible and do business with. This article analyses the green marketing process and practices prevalent in the food industry of India. Green marketing, along with greening the product and the firm by converting the 4Ps (price, product, promotion and place) of marketing into 4Ps of green marketing, involves a careful understanding of consumer preferences and purchase decision process. An in-depth review of the recent literature indicates that most of the aspects of green marketing align synergistically with the framework in the developed nations and, though it may appear to lag behind momentarily, it is catching-up quickly among Asian countries, including India. With the conscious-consumer at the helm, green marketing is increasingly viewed as a relevant marketing strategy in India towards sustainable development of the food industry. A questionnaire-based survey method was used for the data collection from food companies in India. The data were analyzed using exploratory factor analysis and made use of other statistical tools and evaluations as well.The data presented in this study was also drawn from the World Bank repository of food processing companies of India. In India, the demand for environmentally-safe and green food products has been at the lower level, as the consumers perceive these options to be expensive and not offering much special benefits to them. In the long-term, both the consumers and the food processing industry stand to benefit greatly from such green marketing initiatives and awareness but the policies and strategies need to be formulated and implemented accordingly. This article recommends that the Government of India and various business organizations work together to adjust and promote the marketing elements to Indian consumers so as to increase the acceptance, accessibility and affordability of the green products.
    Keywords: Green Marketing Practices, Green Products, Food Processing Industry, Sustainable Development
    JEL: M39 Q01 Q13
  2. By: Inderst, Roman; Obradovits, Martin
    Abstract: Loss leading is analyzed in a model of promotions (as in Varian 1980) with limited consumer attention: (i) Consumers only compare prices of a selected number of products and (ii) they may pay more attention either to price or quality, depending on the salience of the respective attributes. When consumers have standard preferences, which is our benchmark case, manufacturers benefit when one-stop shopping induces retailers to discount their products, as this expands demand. Results are strikingly different when consumers are salient thinkers. When one-stop shopping or retail competition increases the scope for loss leading, manufacturers' profits decline and there may be an inefficient substitution to lower-quality products. In particular, shoppers who compare products may end up with a choice that is strictly inferior to that of non-shoppers who are locked in to a (local) retailer. Our analysis has implications both for competition policy, as we analyze the implications of a ban on loss leading, and for marketing, as we also analyze how salience affects retailers' product and promotion strategies.
    Keywords: limited attention; loss leading; manufacturer profits; product choice; promotions; quality choice; retailing; sales; salience
    JEL: D21 D43 D83 L11 L13 L15
    Date: 2015–09
  3. By: Gilad Sorek
    Abstract: Two medical providers choose their geographic location and medical-care specialization, and then compete in prices through health insurance sales. When buying insurance consumers know their geographic address, but they do not know their preferred medical treatment before getting sick. This uncertainty generates option demand for multiple providers: consumers may desire access for both providers although eventually attending only one. I characterize equilibrium with both providers located at the city center and at the quartiles of the products line. Under these locations and products choices all consumers buy insurance with access to both providers. This market outcome is efficient only if consumers care about minimizing mismatches between medical needs and medical products more than they care about minimizing commuting distance. Otherwise the market provides excessive product differentiation and insufficient geographic dispersion between medical providers. In this case the first best market outcome can be achieved by regulating (zoning) providers' geographic locations in a way that eliminates option demand for multiple providers: each consumer wishes access only to the geographically-closest provider.
    Keywords: Location, Product Differentiation, Option Demand
    JEL: I11 I13 L1
    Date: 2015–09
  4. By: Petr Svoboda (Faculty of Management, University of Economics, Prague); Monika Harantova (Faculty of Management, University of Economics, Prague)
    Abstract: Higher education institutions involve in marketing efforts to build up a good image and improve the level of satisfaction of all stakeholders. Building of good relationships between higher education institutions and their students is essential for their long-term success. After all, only satisfied students and alumni can bring the best promotion of the university via word of mouth marketing and other ways. Higher education institutions should identify and meet expectations of students to attract more prospective students and to retain the present ones. This study aims at the quality of higher education institutions and its evaluation from the alumni perspective. The paper also suggests methods for evaluating alumni satisfaction, loyalty and other factors. Using this methodology, higher education institutions can obtain responses to questions of how they should represent themselves to the public in the future and how they should build their image and strong brand.
    Keywords: Alumni, Higher education, Image, Loyalty, Marketing, Quality, Satisfaction
    JEL: M31 A00
  5. By: Mihail Cocosila (Faculty of Business, Athabasca University); Houda Trabelsi (Faculty of Business, Athabasca University)
    Abstract: This study investigates the adoption of contactless mobile payments from a user point of view. Near Field Communication (NFC) mobile payments that consist of credit card contactless payments with smartphones are believed to be on a rapid growth path due to expected advantages for all major parties involved: consumers, credit card companies, banks, smartphone manufacturers, and mobile operators. Despite this overall optimistic picture there may, however, be some potential user doubts that would slow adoption. Thus, NFC payments might be associated with both fears linked to credit card use (e.g., account security) and to smartphone use (e.g., privacy). To assess the contrasting, positive and negative, factors of contactless mobile payments adoption from a user perspective, a cross-sectional investigation was run with two samples of Canadian consumers, 150 participants each. While one of the samples was presented information emphasizing the advantages of NFC mobile payments, the other sample was presented information pointing to possible issues associated with this new form of mobile payments. Following that, an online survey was conducted simultaneously with all participants in the two samples. Outcomes indicate that, irrespective of the information offered a priori, consumers perceive both opportunities (e.g., utility and fun) and challenges (e.g., unnecessary complications or privacy threats) associated with the service provided. Major players on the NFC mobile payments market should address these salient consumer factors in order to increase consumer adoption and, hence, the overall success of contactless mobile payments with smartphones.
    Keywords: mobile payment, credit card, smartphone, empirical investigation, Canada
    JEL: M15
  6. By: Pacharaporn Arkornsakul (Faculty of management sciences,Chiang Mai Rajabhat University); Woraphon Yamaka (Faculty of Economics Chiang Mai University); Sombat Singkharat (Faculty of management sciences,Chiang Mai Rajabhat University)
    Abstract: The purposes of this research was conducted to study the behavior of consumers who use gasohol and their willingness to pay for it and also to determine factors that influence consumer to pay for gasohol E100 in Chiang Mai and Nakhon Ratchasima Province. Contingent Valuation Method (CVM) was adopted as a hypothetical situation in the form of questionnaires which consists of double bounded dichotomous choice. Maximum Likelihood Estimation (MLE) was the method of analysis used and willingness to pay for gasohol by using Generalized Ordered Logit Model. Stata is needed for collecting data. The result of research found out that due to 800 samples from two sample group (Chiang Mai 400 samples and Nakhon Ratchasima 400 samples) to compare the willingness to pay for gasohol E100. It is discovered that most consumers was unwillingness to pay for the second gasohol quotation which was lower 32.50 Bath per liter due to most consumer were unconvinced the quality of gasohol E100. The measurement of willingness to pay for gasohol E100 average was 30.64 baths per liter in Chiang Mai group and 27.12 baths per liter in Nakhon Ratchasima group. In addition, attitude toward the environment is one of all factor are determining the willingness of consumers to pay for gasohol E100. Gasohol E100 is unknown among the majority of car users. Thailand Government should carry out promote and inform people about the benefits and drawbacks of gasohol E100 and should research on it. It should be supported as a short term and long term study. As a consequence, consumers will understand and be confident in using gasohol E100. This will change willingness of consumers to pay for gasohol E100
    Keywords: Willingness to pay; Gasohol E100; Energy
    JEL: C25 D10 Q58
  7. By: Monika Harantova (Faculty of Management, University of Economics, Prague); Petr Svoboda (Faculty of Management, University of Economics, Prague)
    Abstract: A brand (respectively trademark) can become a valuable intangible asset of a company, if built and managed correctly. From a customer perspective, the brand grants a guarantee of quality and simultaneously, it represents a strong competitive advantage for a producer or a service provider due to the differentiation of their products and services. The primary objective of this paper is to clarify the valuation practices of small and medium enterprises (SME) in the Czech Republic, based on several case studies. The secondary objective of the article is to point out the valuation differences which arise when using different valuation methods.
    Keywords: Brand, Brand equity, Brand management, Brand value, Methods for brand valuation
    JEL: M31

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