nep-mkt New Economics Papers
on Marketing
Issue of 2016‒01‒18
eleven papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Organic Salmon – Considered a Fisheries or Agricultural Product Among Consumers? By Ankamah-Yeboah Isaac; Max Nielsen; Rasmus Nielsen
  2. Time Scarcity and the Market for News By Larbi Alaoui; Fabrizio Germano
  3. Consumer valuation of health attributes in food By Sinne Smed; Lars Gårn Hansen
  4. Consumers’ Response to Sustainability Labeling in Wild Caught Fish By Katrin Zander; Doreen Bürgelt; Inken Christoph-Schulz; Petra Salamon; Daniela Weible
  5. Identifying Key Drivers and Bottlenecks in the Adoption of E-Book Readers in Korea By Dongnyok Shim; Jin Gyo Kim; Jorn Altmann
  6. Millennials with money revisited: updates from the 2014 Consumer Payments Monitor By Herbst-Murphy, Susan; Weed, Greg
  7. Payment instrument adoption and use in the United States, 2009–2013, by consumers' demographic characteristics By Connolly, Sean; Stavins, Joanna
  8. A Survey of the Empirical Evidence on PWYW Pricing By Greiff, Matthias; Egbert, Henrik
  9. Factors influencing marketing communication perception by singles in Czech Republic By Martin Klepek; Kateřina Matušínská
  10. A STUDY ON RETAIL FMCG MARKETING IN RURAL INDIA By Shambhavi Tamrakar; Bharti Venkatesh
  11. Consumption taxes and taste heterogeneity By Stéphane Gauthier; Fanny Henriet

  1. By: Ankamah-Yeboah Isaac (Department of food and Resource Economics, Faculty of Science, University of Copenhagen, Denmark); Max Nielsen (Department of food and Resource Economics, Faculty of Science, University of Copenhagen, Denmark); Rasmus Nielsen (Department of food and Resource Economics, Faculty of Science, University of Copenhagen, Denmark)
    Abstract: The year 2016 is groundbreaking for organic aquaculture producers in EU, as it represents the deadline for implementing a full organic life cycle in the aquaculture production. Such a shift induces production costs for farmers and if it should be profitable, they must receive higher prices. This study identifies the price premium on organic salmon in the Danish retail sale sector using consumer panel scanner data for households by applying the hedonic price model. A premium of 20% for organic salmon is found. Since this premium is closer to organic agriculture products than to ecolabelled capture fisheries products, it indicates that consumers consider organic salmon as an agriculture product more than fisheries product.
    Keywords: price premium, organic seafood, fisheries ecolabel, salmon; price premium, organic seafood, fisheries ecolabel, salmon
    Date: 2015
  2. By: Larbi Alaoui (Universitat Pompeu Fabra and Barcelona Graduate School of Economics); Fabrizio Germano (Universitat Pompeu Fabra and Barcelona Graduate School of Economics)
    Abstract: We develop a theory of news coverage in environments of information abundance that include both new and traditional news media, from online and print newspapers to radio and television. News consumers are time-constrained and browse through news items that are available across competing outlets, choosing which outlets to access and which stories to read or skip. Media firms are aware of consumers’ preferences and constraints, and decide on rankings of news items that maximize their profits. We find that the news consumed in equilibrium is highly sensitive to the details of the environment. We show that even when readers and outlets are rational and unbiased, readers may consume more than they would like to, and the news items they consume may be significantly different from the ones they prefer. Important news items may be crowded out. Next, we derive implications on diverse aspects of current media, including a rationale for tabloid news, a rationale for why readers prefer like-minded news, and how advertising can contribute to crowding out news. We also analyze methods for restoring reader-efficient standards and discuss the political economy implications of the theory.
    Keywords: news markets, time constrained consumers, digital media, news coverage, public media.
    JEL: D80 H44 L82 L86
    Date: 2015–12–27
  3. By: Sinne Smed (Department of Food and Resource Economics, University of Copenhagen); Lars Gårn Hansen (Department of Food and Resource Economics, University of Copenhagen)
    Abstract: Numerous studies find that education and the healthiness of diets are highly correlated. One possible explanation is that the most highly educated consumers are better at understanding and appreciating the health implications of their diet than consumers with less lower education. In this study, we estimate a hedonic model of consumers’ valuation of food characteristics that allows nutrients to influence utility both through their perceived effects on health and through their effects on the taste and consumption experience. We find that the most highly educated have the same or lower revealed preferences for health compared to the least educated, and we find that it is differences in taste preferences, not differences in health preferences, that explain why the most highly educated have a healthier diet.
    Keywords: hedonic model, taste, health, food consumption
    JEL: D12 I12
    Date: 2016–01
  4. By: Katrin Zander (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Doreen Bürgelt (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Inken Christoph-Schulz (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Petra Salamon (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Daniela Weible (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig)
    Abstract: Increasing shares of fish products are sold as sustainably caught. This contribution tackles consumers’ specific knowledge on, interest in and expectations about sustainable fisheries and its products, their awareness of existing sustainability labels on fish as well as the purchase relevance of these labels in Germany. We conducted in total 12 focus groups with fish consumers in different German cities. The results show that consumers expect sustainable fisheries to avoid by-catches, overfishing and not to use dynamite. Knowledge about fisheries was mostly low and for many of the discussants this topic was new. When asked in an unprompted manner for their awareness of different labels of sustainably caught wild fish, the label of the Marine Stewardship Council was the only one known by some of the participants. It turned out that participants were skeptical about food labeling and standard setting in general. Accordingly, many participants stated not to look for sustainability labels when purchasing fish products. In order to tackle with consumers’ limited knowledge of fish and low interest in additional information, communication of sustainability in fisheries should be short, simple and reliable. Sustainability standards which clearly differentiate from noncertified fisheries are required.
    Keywords: consumer behaviour, consumer attitudes, sustainable fisheries; consumer behaviour, consumer attitudes, sustainable fisheries
    JEL: Q13 Q22
    Date: 2015
  5. By: Dongnyok Shim (College of Engineering, Seoul National University); Jin Gyo Kim (Graduate school of Business, Seoul National University); Jorn Altmann (College of Engineering, Seoul National University)
    Abstract: This study seeks to describe the dynamic effects of innovation characteristics and consumer innovativeness as conditioned by consumer decision making in the Korean E-book reader market. Dedicated Korean E-book readers have received little research attention over the last few years, as consumers’ interest in E-book readers has not been as high as was expected. This study identifies the barriers and bottlenecks impacting Korean consumers’ adoption of dedicated E-book readers based on the theories of innovation adoption and consumer behavior. Our estimation results indicate that complexity was the main bottleneck blocking the adoption of dedicated E-book readers in every decision-making stage (cognitive-affective-behavioral), whereas observability was the driver stimulating adoption in every stage. Moreover, the relative advantage of dedicated E-book readers is significant only in the affective stage, while compatibility is meaningful only in the behavioral stage. The results of this study provide useful guidelines to help marketers and engineers design dedicated e-book readers and promote them in Korea.
    Keywords: : Innovation Adoption Theory, Hierarchy of Effects Model, Innovativeness, Multivariate Probit Model, E-Book Reader, South Korea.
    JEL: C11 C31 C83 D12 D85 O32 O33 M31 M37
    Date: 2016–01
  6. By: Herbst-Murphy, Susan (Federal Reserve Bank of Philadelphia); Weed, Greg (Phoenix Marketing International)
    Abstract: Overall growth in general purpose reloadable prepaid card ownership was not as robust between 2013 and 2014 as it was between 2012 and 2013 except in one notable segment: high-income Millennials. This same demographic group also exhibited a strong propensity to use alternative financial services along with traditional bank products. This paper further explores this group of “hybrid” financial services consumers. It also examines the broader use of financial services by young adults and reports on ways in which their choices differ from those of older consumers, along with evidence that conventional services are also used to the same — in some cases, even greater — degree as their parents’ and grandparents’ generations. The findings are sometimes counterintuitive, particularly with regard to some stereotypes about this young generation that have been put forth. Because of the size of this cohort, their behaviors could influence what the future of financial services consumption and delivery may look like.
    Keywords: GPR prepaid cards; Millennials; Alternative financial services; General purpose reloadable cards;
    JEL: D1
    Date: 2015–12–22
  7. By: Connolly, Sean (Boston University); Stavins, Joanna (Federal Reserve Bank of Boston)
    Abstract: Today’s consumer has access to more payment instruments than consumers of just a few years ago. As the number of available payment methods increases, so does the need to understand why consumers adopt certain payment instruments, how consumers choose to pay for purchases, which consumers make certain payments, and who is most affected by changes in the payment system. Previous literature that examined the association between consumer payment behavior and consumer demographic information was based on data from a single time period. This paper contributes to the literature on this topic by reporting, for the first time, demographic trends in consumer adoption and use of several payment instruments over the period of five consecutive years from 2009 to 2013.
    JEL: D12 D14
    Date: 2015–10–19
  8. By: Greiff, Matthias; Egbert, Henrik
    Abstract: We review a large number of empirical studies on Pay-What-You-Want (PWYW) pricing. We distinguish between laboratory experiments, field experiments, survey experiments and case studies. Based on this survey we identify the following two gaps in the recently flourishing literature on PWYW pricing: (1) studies on PWYW pricing for goods with high cost, and (2) studies on the long-term effects of PWYW pricing.
    Keywords: Pay-What-You-Want, PWYW, pricing mechanism, survey, empirical studies
    JEL: C90 D12 D49 M21 M30
    Date: 2016–01–05
  9. By: Martin Klepek (Institute of Interdisciplinary Research, Silesian University); Kateřina Matušínská (Department of Business Economics and Management, School of Business Administration, Silesian University)
    Abstract: Fundamental changes in the population lifestyle thanks to globalization and socio-economic transformations occurred during last decade. New segment of customers emerged, firstly in highly advanced countries and later in all around the developed world. This working paper presents a structural equation model used to verify the validity of the model from previous exploratory factor analysis. We used primary quantitative data on singles as a specific segment for marketers with focus on marketing communication and its perception. Paper starts with brief theoretical debate on singles as socio-demographic group and continues with marketing communication components used for this particular questionnaire. For purpose of collecting data, online and offline questionnaire was given to 702 respondents in total during the years 2014 and 2015. Model was constructed using SPSS Amos. We synthesised two data sets under one model performing model fit. Our results show underlying structure in the data. Two latent factors which influence perception of marketing communication tools verified previous findings.
    Keywords: consumer behaviour, marketing communication, marketing potential, marketing research, model, singles
    JEL: M31
    Date: 2015–12–30
  10. By: Shambhavi Tamrakar; Bharti Venkatesh
    Abstract: Rural marketing is a vast and developing area and when its comes to exploring rural market, it has a great future possibility to expand the market . FMCG sector in India is the fourth largest in the economy & none of the FMCG companies would like to miss this opportunity, it gives an immense growth possibilities. Characteristics like low income ,illiteracy , heterogeneity ,scattered population are making it a bit unattractive but still it has a huge scope of penetration as government are now launching various schemes to uplift the rural India to get them pace with the current scenario of technological advancement . FMCG companies are also adopting various marketing strategies and approaches to penetrate in to rural market and have win -win situation. This paper tries to understand what rural market are? Its origin, characteristics, contribution to economy ,challenges and future prospects. Key words: Rural market, EMCG, retail, marketing
    Date: 2015–09
  11. By: Stéphane Gauthier (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Fanny Henriet (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics)
    Abstract: We study optimal commodity taxes in the presence of non-linear income taxes when agents differ in skills and tastes for consumption. We show that commodity taxes are partly determined by a many-person Ramsey rule when there is taste heterogeneity within income classes. The usual role of consumption taxes in relaxing incentive constraints explains the remaining part of these taxes when there is taste heterogeneity between income classes. We quantify the importance of these two components on Canadian microdata using a new method to identify empirically the binding incentive constraints. Incentives matter but tax exemptions are mostly justified by Ramsey considerations.
    Keywords: taste heterogeneity, commodity taxes, income taxation, empirical tests for asymmetric information, social weights
    Date: 2016–01–07

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