nep-mkt New Economics Papers
on Marketing
Issue of 2015‒10‒04
nine papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Nonlinear Pricing By Mark Armstrong
  2. The impact of Online Social Network’ usage on the purchase decision process: Quantitative and Qualitative stud By Amel GRAA; Soumia ABDELHAK; Hayat BARAKA
  3. Does the Country of Origin matters for hybrid products? By Anca Tamas
  5. Lobbying and the political economy of pricing car access to downtown commercial districts By DE BORGER, Bruno; RUSSO, Antonio
  6. Does a Platform Monopolist Want Competition? By Niedermayer, Andreas
  7. What Drives Home Market Advantage? By A. Kerem Cosar; Paul L. E. Grieco; Shengyu Li; Felix Tintelnot
  8. Producer cooperatives and regulation in Europe's wine industry, 1880-1980 By Fernández, Eva; Simpson, James
  9. Regulatory barriers and business model evolution: the case of the French retail sector. 24th International Conference of the French Strategic Management Society (AIMS) By Adam Dewitte

  1. By: Mark Armstrong
    Abstract: I survey the use of nonlinear pricing as a method of price discrimination, both with monopoly and oligopoly supply. Topics covered include an analysis of when it is profitable to offer quantity discounts and bundle discounts, connections between second- and third-degree price discrimination, the use of market demand functions to calculate nonlinear tariffs, the impact of consumers with bounded rationality, bundling arrangements between separate sellers, and the choice of prices for upgrades and add-on products.
    Keywords: Price discrimination, nonlinear pricing, bundling, product-line pricing, screening, discrete choice.
    JEL: D11 D21 D42 D86 L13 M31
    Date: 2015–09–10
  2. By: Amel GRAA (Djilali Liabes University); Soumia ABDELHAK (Djilali Liabes University); Hayat BARAKA (Djilali Liabes University)
    Abstract: The main goal of this research has to show how online social networks (ONS) influence the consumers’ purchase decisions. Our efforts to study empirically the online social network’ usage and its impact on the purchase decision process might account for the important frequency of the access of this tool led to the employ of both qualitative and quantitative data collection techniques. We present a quantitative research including descriptive method on the use of ONS by 187 students from Sidi Bel Abbes University (Algeria). Data analysis has been done by using Sphinx V5 computer software. Results indicate that Facebook is the most popular site. The results also demonstrate that the students engage with social media platform daily and they spend between one to four hours. The other method of the research has been qualitative which 13 students have been interviewed as users of online social network for mainly identifying the stage where social media has interfered in the consumer decision making process. The results of this research highlight that the OSN is an important tool for information search stage, in which is influenced by the level and direction of purchase decision. The findings offer insight into consumers’ behavior in brand communities and into the prospects of social media being a viable sales and communication channel to companies. As a future research direction, authors suggest studying the OSN post-experience.
    Keywords: Online social networks, Purchase decision, Qualitative research, Students, Algeria.
    JEL: M31
  3. By: Anca Tamas (Bucharest University of Economic Studies)
    Abstract: Purpose-the aim of the paper is to assess how is Country of origin perceived for the hybrid products by the Romanian consumers. Design/methodology/approach-statistical analyze and econometric methods, using SPSS, the Pearson correlation, the cluster method, the t-test; critical assessment of literature review; quantitative methods: 126 online questionnaires. Findings-Country of origin is important for buying decision in the case of hybrid products; Country of Brand is mostly perceived as the Country of Origin of the considered hybrid products; identifying the Country of Origin is more demanding for hybrid products. Practical implications-considering the consumers’ opinions on the Country of Origin for the hybrid products retailers could emphasize the Country of Brand. Originality/value-providing an insight of an area with only few researches and an insight on the Romanian consumers. Limitations-the respondents were only from the South part of Romania
    Keywords: country of origin, hybrid products
    JEL: D12 M31
  4. By: A GÜLERARSLAN (Selcuk University)
    Abstract: According to definition of World Health Organization “Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity”. Starting from this point in present society individuals not only purchasing products for health for any diseases which they suffer but also for sustaining their comfort and to feel themselves well. Herbal products appear as important consuming product in treatment period of diseases and also in protective health. In this study role of opinion leaders about purchasing attitude and behaviors of individuals having knowledge about herbal products somehow is questioned. Study aims to determine under which criteria attitudes occur about very important issue such as health determining the quality of life of individuals is about understanding by which references opinions occur about purchasing herbal products and influence of opinion leaders during purchasing process. Study particularly aims to present the role of opinion leaders within the context of high educated sample.
    Keywords: Health Communication, Health Consumption, Purchasing Behavior, Opinion Leaders
    JEL: E29
  5. By: DE BORGER, Bruno; RUSSO, Antonio
    Abstract: We develop a positive theory of pricing car access (by parking fees or cordon tolls) to downtown commercial districts. The model accounts for the special interests of downtown retailers and competing superstores at the edge of the city, and studies how lobbying by both groups shapes the government’s policy. We find that downtown retailers typically have steeper lobbying contribution schedules than superstores, which induces the government to underprice central roads and parking spaces. This result is strengthened if some consumers visit both downtown and edge of town retailers. The presence of an alternative travel mode (e.g. public transport) does not weaken downtown retailers’ incentives to oppose car tariffs. Finally, extending the model to allow for lobbying by residents within the downtown retail district we find that residents may lobby for higher or lower parking fees, depending on their relative concern for the vitality of the central district. As a consequence, depending on parameter values, the outcome of lobbying may produce car fees below or above first-best levels. We argue that our results are in line with empirical observations.
    Keywords: Parking, Road pricing, Lobbying, Retailers, Superstores
    JEL: D72 H23 D43 R41
    Date: 2015–05
  6. By: Niedermayer, Andreas
    Abstract: We consider a software vendor first selling a monopoly platform and then an application running on this platform. He may face competition by an entrant in the applications market. The platform monopolist can benefit from competition for three reasons. First, his profits from the platform increase. Second, competition serves as a credible commitment to lower prices for applications. Third, higher expected product variety may lead to higher demand for his application. Results carry over to non-software platforms and, partially, to upstream and downstream firms. The model also explains why Microsoft Office is priced significantly higher than Microsoft’s operating system.
    Keywords: Platforms; Entry; Complementary Goods; Price Commitment; Product Variety; Microsoft; Vertical Integration; Two-Sided Markets
    JEL: D41 D43 L13 L86
    Date: 2015–09–22
  7. By: A. Kerem Cosar; Paul L. E. Grieco; Shengyu Li; Felix Tintelnot
    Abstract: In the automobile industry, as in many tradable goods markets, firms earn their highest market share within their domestic market. This home market advantage persists despite substantial integration of international markets during the past several decades. The goal of this paper is to quantify the supply- and demand-driven sources of the home market advantage and to understand their implications for international trade and investment. Building on the random coefficients demand model developed by Berry, Levinsohn, and Pakes (1995), we estimate demand and supply in the automobile industry for nine countries across three continents, allowing for unobserved taste and cost variation at the car model and market levels. While trade and foreign production costs as well as taste heterogeneity matter for market outcomes, we find that preference for domestic brands is the single most important driver of home market advantage - even after controlling for brand histories and dealer networks.
    JEL: F14 F23 L11 L16 L62
    Date: 2015–09
  8. By: Fernández, Eva; Simpson, James
    Abstract: Wine cooperatives were relatively scarce in Europe before the Second WorldWar, but accounted for more than half of all wines made in France, Italy, and Spain, thethree major producer countries, by the 1980s. This article argues that their initial slowdiffusion was caused by the difficulties in measuring and controlling grape quality, andthat this provided incentives for members to produce large volumes of poor fruit whichadversely affected the wines. Cooperatives only became popular when the state offeredmaterial incentives to growers that helped compensate these problems of collectiveaction. This initially involved cheap credit to help build wineries but, from the 1950s,growers enjoyed additional incentives to join cooperatives as governments attempted toregulate wine markets and provide income support. The problems associated with grapequality were never resolved and, with the major decline in consumption from the 1980sand move away from bulk towards premium wines, cooperatives became increasinglyuncompetitive in the market place.
    Keywords: Wine cooperatives , Regulation , Economic history , Europe
    JEL: N53 N54 O13 Q10
    Date: 2015–08
  9. By: Adam Dewitte (IAE Lille - Institut d'Administration des Entreprises - Lille - Université Lille 1 - Sciences et technologies, LEM - Lille - Economie et Management - Université Lille 1 - Sciences et technologies - Fédération Universitaire et Polytechnique de Lille - CNRS)
    Abstract: Theoretically, an evolution of a firm’s business model (BM) is required when a change occurs in its environment (internal or external). This evolution may lead to the transformation of an existing BM or to the launch of a new model. Most of the time, research in strategy highlight internal elements (such as the project of the top management) to explain BM evolution. Yet, the environment of the firm is a significant pattern of BM evolution. However, literature does not focus enough on those external factors in general, and on the regulatory barriers in particular. Thus, we try to understand in this research the impact of regulatory constraints on the evolution of the firms’ business model. In order to do so, we implement a case study of the French retail sector. First of all, we discuss the factors which lead to the evolution of the firms’ BM. Then, we carry out the in-depth study of a single case : the French retail sector. It allows us to identify its business models and regulatory barriers. Afterwards, we analyze the barriers to creation of new stores, so as to understand how the launch of new BM circumvent regulatory constraints. Finally, we identify the height of the barriers on the different BM. It allows us to set up the process of regulatory barriers’ circumvention by the business model. The theorization process stemming from the case study leads to the emergence of three research proposals. Future academic works are required to investigate the new research fields opened by those proposals.
    Abstract: L'approche Business Model (ou BM) invite l'entreprise à faire évoluer son modèle économique en fonction de changements survenant tant en interne qu'à l'externe. Ces évolutions peuvent se faire par la transformation du BM existant ou par le lancement d'un nouveau modèle. Bien souvent, les recherches en gestion mettent en évidence les éléments internes (comme le projet du dirigeant) comme moteur de l'évolution du BM. Or, l'environnement, et notamment les contraintes réglementaires, sont un motif important d'évolution des modèles. Cependant, ces facteurs externes sont encore trop peu étudiés dans la littérature. Par conséquent, nous nous intéressons dans cette recherche à comprendre quel est l'impact des contraintes réglementaires sur l'évolution des BM des entreprises ? Pour ce faire, nous procédons dans cette recherche à une étude du cas de la grande distribution alimentaire française. Dans un premier temps nous nous attachons à discuter les facteurs d'évolution des BM des entreprises. Nous réalisons ensuite l'étude du cas unique de la grande distribution alimentaire française. Cela nous conduit à identifier les BM et les barrières réglementaires du secteur. Nous portons ensuite notre analyse sur les barrières à l'implantation de nouveaux points de vente afin de comprendre comment le lancement de nouveaux modèles permet le contournement des contraintes juridiques. Nous identifions dans un dernier temps la force des barrières sur les différents BM et le processus de contournement des barrières réglementaires par le BM. Le processus de théorisation issu du cas conduit à l'émergence de propositions qui sont autant de pistes de recherche qu'il convient d'explorer dans de futurs travaux.
    Keywords: Business Model,Regulatory Barriers,Case Study,Retail Sector,Strategic Management,Grande distribution,Management stratégique,Mots-clés : Business model,Barrière réglementaire,Etude de cas
    Date: 2015–06–03

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