nep-mkt New Economics Papers
on Marketing
Issue of 2015‒11‒21
five papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Demand for a Transgenic Food with a Medical Benefit By Saito, Yoko; Saito, Hisamitsu
  2. Attention and Saliency on the Internet: Evidence from an Online Recommendation System By Helmers, Christian; Krishnan, Pramila; Patnam, Manasa
  3. Behavior-based price discrimination and customer information sharing By Romain De Nijs
  4. Price Dispersion and Informational Frictions: Evidence from Supermarket Purchases By Dubois, Pierre; Perrone, Helena
  5. Dimensions of Real and Virtual Consumer Experiences By Katarzyna Dziewanowska

  1. By: Saito, Yoko; Saito, Hisamitsu
    Abstract: The perceived health and environmental risks of genetically modified (GM) technology have impeded its diffusion in developed countries. However, GM crops, which can provide direct consumer as well as producer value, have recently been developed. This study applies a stated choice experiment to examine whether the addition of a medical benefit can improve the welfare of the beneficiaries of the newly developed GM variety. Our results show a tradeoff between general worries over GM technology and GM food’s specific health benefits. A marketing program should therefore be designed to inform and persuade consumers of these features.
    Keywords: genetically modified research design, health, stated-preference method.
    JEL: D12 I10 Q13
    Date: 2015–11–18
  2. By: Helmers, Christian; Krishnan, Pramila; Patnam, Manasa
    Abstract: Using high-frequency transaction-level data from an online retail store, we examine whether consumer choices on the internet are consistent with models of limited attention. We test whether consumers are more likely to buy products that receive a saliency shock when they are recommended by new products. To identify the saliency effect, we rely on i) the timing of new product arrivals, ii) the fact that new products are per se highly salient upon arrival, drawing more attention and iii) regional variation in the composition of recommendation sets. We find a sharp and robust 6% increase in the aggregate sales of existing products after they are recommended by a new product. To structurally disentangle the effect of saliency on a consumer’s consideration and choice decision, we use data on individual transactions to estimate a probabilistic choice set model. We find that the saliency effect is driven largely by an expansion of consumers’ consideration sets.
    Keywords: advertising; limited attention; online markets
    JEL: D22 K11 M30 O34
    Date: 2015–11
  3. By: Romain De Nijs (Ecole Polytechnique [Palaiseau] - Ecole Polytechnique, PSE - Paris-Jourdan Sciences Economiques - CNRS - Institut national de la recherche agronomique (INRA) - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC))
    Abstract: This article investigates the incentives and the effects of information sharing among rival firms about the identities of their past customers in a two-period model with behaviorbased price discrimination (BBPD). An unilateral information exchange between the two periods takes place in a subgame-perfect equilibrium. This exchange increases the ability of the industry to price discriminate consumers according to their profiles and boosts the profitability of BBPD at the expense of consumers.
    Keywords: Price discrimination,Dynamic pricing,Privacy,Information sharing
    Date: 2015–10–28
  4. By: Dubois, Pierre; Perrone, Helena
    Abstract: Traditional demand models assume that consumers are perfectly informed about product characteristics, including price. However, this assumption may be too strong. Unannounced sales are a common supermarket practice. As we show, retailers frequently change position in the price rankings, thus making it unlikely that consumers are aware of all deals o¤ered in each period. Further empirical evidence on consumer behavior is also consistent with a model with price information frictions. We develop such a model for horizontally di¤erentiated products and structurally estimate the search cost distribution. The results show that in equilibrium, consumers observe a very limited number of prices before making a purchase decision, which implies that imperfect information is indeed important and that local market power is potentially high. We also show that a full information demand model yields severely biased price elasticities.
    Keywords: imperfect information, price dispersion, sales, search costs, product dif- ferentiation, consumer behavior, demand estimation, price elasticities.
    JEL: D4 D83 L11 L66
    Date: 2015–10
  5. By: Katarzyna Dziewanowska (University of Warsaw, Faculty of Management)
    Abstract: The purpose of this paper is to present the extended literature review on consumer experiences in online and offline shopping environment leading to identification of key dimensions of consumer experiences and providing an overview of current state of research in the identified areas. The paper begins with a brief introduction to the experience economy as a concept and to how consumer experiences are defined and understood. In the second part of the paper, theoretical and empirical research on models and measurement tools of consumer experiences in the shopping context is presented and discussed. The last section of the paper presents selected studies on consumer shopping experiences in online and offline retail context in each of previously defined dimensions.
    Keywords: consumer, experience, ecperience economy, dimensions, models, store, shopping, online, offline, real, virtual
    JEL: M00 M30 M31 M21 O30
    Date: 2015–11

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