nep-mkt New Economics Papers
on Marketing
Issue of 2015‒12‒08
nine papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. How Travelers Use Online and Social Media Channels to Make Hotel Choice Decisions. A Comparative Study of Russian Federation and American Tourists’ Online Consumer Behavior By Sergey P. Kazakov; Marina D. Predvoditeleva
  2. Can credit cards with access to complimentary credit score information benefit consumers and lenders? By Mikhed, Vyacheslav
  3. Option Valuation with Volatility Components, Fat Tails, and Nonlinear Pricing Kernels By Kadir G. Babaglou; Peter Christoffersen; Steven L. Heston; Kris Jacobs
  4. Identifying Competition Neutrality of SOEs in China By WATANABE Mariko
  5. Strategic Skills for Scientists By Franta, Benjamin
  6. Out of sight, out of mind: consumer reaction to news on data breaches and identity theft By Mikhed, Vyacheslav; Vogan, Michael
  7. The Internet, Cross-Border Data Flows and International Trade By Joshua Paul Meltzer
  8. The economics of debt collection: enforcement of consumer credit contracts By Fedaseyeu, Viktar; Hunt, Robert M.
  9. Determinants of Tobacco Consumption in Papua New Guinea: Challenges in Changing Behaviours By Xiaohui Hou; Xiaochen Xu; Ian Anderson

  1. By: Sergey P. Kazakov (National Research University Higher School of Economics); Marina D. Predvoditeleva (National Research University Higher School of Economics)
    Abstract: Over the last decades, the global hospitality and tourism (or H&T) industry has undergone dramatic changes. Among the factors stimulating the growth of the H&T industry, the spread of information and communication technologies (ICTs) and social media should be emphasized. The same trends characterize the Russian H&T industry as well. However, despite the significant role of social media in the Russian H&T industry, there is still a lack of understanding of Russian H&T customers’ behavior. The current study aims to fill this gap and demonstrates how Russian travelers use social media to make hotel choice decisions and share their experiences on social media after their travel is completed. In order to deliver a more thorough revealing of Russian travel consumers’ peculiarities and to discover if there is Russian uniqueness, the online behavior of American and Russian travelers is compared in this paper.
    Keywords: hospitality industry, social media, ICT, customers’ behavior, Russia.
    JEL: M16
    Date: 2015
  2. By: Mikhed, Vyacheslav (Federal Reserve Bank of Philadelphia)
    Abstract: Barclaycard U.S. is one of a growing number of banks offering cardholders free access to their FICO® Credit Scores with credit card products. On November 19, 2014, Paul Wilmore of Barclaycard U.S. presented Barclays’ rationale for offering this feature and provided his perspective on its development. He also discussed how consumers responded to this feature in terms of their spending, repayment behavior, and lifespan and intensity of their relationship with the bank. According to Wilmore, program participation is correlated with increased card spending, decreased credit utilization and delinquency, increased digital engagement, and lower cardholder attrition.
    Keywords: Credit Reports; Risk Scores; Credit Cards; Consumer Lending; Information; Credit Performance
    JEL: D12 D14 G21
    Date: 2015–09–30
  3. By: Kadir G. Babaglou (University of Toronto - Rotman School of Management); Peter Christoffersen (University of Toronto - Rotman School of Management and CREATES); Steven L. Heston (University of Maryland - Department of Finance); Kris Jacobs (University of Houston - C.T. Bauer College of Business)
    Abstract: We nest multiple volatility components, fat tails and a U-shaped pricing kernel in a single option model and compare their contribution to describing returns and option data. All three features lead to statistically significant model improvements. A second volatility factor is economically most important and improves option fit by 18% on average. A U-shaped pricing kernel improves the option fit by 17% on average, and more so for two-factor models. Fat tails improve option fit by just over 3% on average, and more so when a U-shaped pricing kernel is applied. Our results suggest that the three features we investigate are complements rather than substitutes.
    Keywords: volatility components, fat tails, jumps, pricing kernel
    JEL: G12
    Date: 2014–11–18
  4. By: WATANABE Mariko
    Abstract: This paper attempts to identify competition neutrality of state-owned enterprises (SOEs) in three consumer electronics industries in China. First, I draw a benefit-price indifference curve at the mode of consumer surplus for each year, and a benefit-price supply curve by manufacturers and ownership types based on the demand estimates for the color TV (CTV), mobile phone, and air conditioning industries in the 2000s. These exercises indicate heterogeneous situations of market neutrality of SOEs in the Chinese consumer electronics industries. The air conditioning market shows a clear positive relationship between benefit and price for all ownership types. At the same time, no clear correlation between ownership and strategies focusing on price or benefit is observed. On the other hand, SOEs and privately-owned enterprises (POEs) in CTV and mobile phone markets concentrate their products based on lower prices and lower benefit area, namely, cost advantage strategies. Ownership type and strategies appear to have a correlation. Furthermore, prices become independent to the level of benefit for local firms. These tendencies are clearly observed in the price-benefit supply curve of the two markets. A simple model of differentiated competition with one agent committing predatory pricing in expropriating soft financial constraint shows that the price set by the rivals of a soft constrained firm is independent to the benefit.
    Date: 2015–11
  5. By: Franta, Benjamin
    Date: 2015–01
  6. By: Mikhed, Vyacheslav (Federal Reserve Bank of Philadelphia); Vogan, Michael (Federal Reserve Bank of Philadelphia)
    Abstract: We use the 2012 South Carolina Department of Revenue data breach to study how data breaches and news coverage about them affect consumers’ take-up of fraud protections. In this instance, we find that a remarkably large share of consumers who were directly affected by the breach acquired fraud protection services immediately after the breach. In contrast, the response of consumers who were not directly exposed to the breach, but who were exposed to news about it, was negligible. Even among consumers directly exposed to the data breach, the incremental effect of additional news about the breach was small. We conclude that, in this instance, consumers primarily responded to clear and direct evidence of their own exposure to a breach. In the absence of a clear indication of their direct exposure, consumers did not appear to revise their beliefs about future expected losses associated with data breaches.
    Keywords: Identity theft; Fraud alert; Data breach; Consumer protection; Credit report
    JEL: D14 D18 G02
    Date: 2015–11–16
  7. By: Joshua Paul Meltzer
    Abstract: The Internet and the free flow of data across borders is becoming a key platform for international trade. Digital products can be sold online and the Internet provides opportunities for business to use the Internet to manage global supply chains, communicate with customers and access IT in the cloud. At the same time, governments are restricting the Internet in ways that reduce the ability of businesses and entrepreneurs to use the Internet as a place for international commerce and limit the access of consumers to goods and services. This article discusses the importance of the Internet and cross-border data flows for international trade. It proposes steps that governments should take to apply existing international trade rules and norms and identifies where new trade rules are required to further support the Internet and cross-border data flows and drivers of international commerce and trade.
    Keywords: trade;Internet;data;investment;cross-border data flows;trade law;WTO;FTA
    Date: 2015–12–17
  8. By: Fedaseyeu, Viktar (Federal Reserve Bank of Philadelphia); Hunt, Robert M. (Federal Reserve Bank of Philadelphia)
    Abstract: Supersedes Working Paper 14-7.{{p}} In the U.S., creditors often outsource the task of obtaining repayment from defaulting borrowers to third-party debt collection agencies. This paper argues that an important incentive for this is creditors' concerns about their reputations. Using a model along the lines of the common agency framework, we show that, under certain conditions, debt collection agencies use harsher debt collection practices than original creditors would use on their own. This appears to be consistent with empirical evidence. The model also fits several other empirical facts about the structure of the debt collection industry and its evolution over time. We show that the existence of third-party debt collectors may improve consumer welfare if credit markets contain a sufficiently large share of opportunistic borrowers who would not repay their debts unless faced with \harsh" debt collection practices. In other cases, the presence of third-party debt collectors can result in lower consumer welfare. The model provides insight into which policy interventions may improve the functioning of the collections market.
    Keywords: Debt collection; Contract enforcement; Consumer credit markets; Regulation of credit markets; Credit cards; Fair Debt
    JEL: D18 G28 L24
    Date: 2015–11–01
  9. By: Xiaohui Hou; Xiaochen Xu; Ian Anderson
    Abstract: This article analyses smoking prevalence and smoking behaviours in Papua New Guinea (PNG). Using the 2009–2010 PNG Household Income and Expenditure Survey, the article analyses the determinants of tobacco use and tobacco choices in PNG. The results show adults (18 years and above) in the poorest quartile are more likely to smoke. Tobacco consumption imposes a large financial burden to poor households. Tobacco consumption accounts for about 23 per cent of total household food expenditure for households in the poorest quartile, as compared with 15 per cent for the entire sample. However, most of these households consume non-processed tobacco. The study reveals the urgency to control tobacco consumption in PNG and considers some practical challenges that the country may face.
    Keywords: tobacco consumption;behaviour change;Papua New Guinea;household survey;tobacco control
    Date: 2015–05–28

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