nep-mkt New Economics Papers
on Marketing
Issue of 2016‒03‒06
nine papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Future marketing and engagement considerations for the non-surgical cosmetic enhancement industry for educated and professional male and female millennial generation target audiences By Kadam, Sudipa
  2. Communicating Sensory Attributes and Innovation Through Food Product Labeling By Caroline Lancelot Miltgen; Gaelle Pantin-Sohier; Bianca Grohmann
  3. How does a change in the excise tax on beer impact beer retail prices in South Africa? By Caitlan Russell; Corne van Walbeek
  4. The dynamic relationship between investments in brand equity and firm profitability: Evidence using trademark registrations By Crass, Dirk; Czarnitzki, Dirk; Toole, Andrew A.
  5. Une nouvelle logique pour le marketing avec l'approche Service-­‐Dominant Logic By Amina Béji-Bécheur
  6. Advertising and Risk Selection in Health Insurance Markets By Aizawa, Naoki; Kim, You Suk
  7. DOES ORGANIC WINE TASTE BETTER? AN ANALYSIS OF EXPERTS’ RATINGS By Delmas, Magali A.; Olivier, Gergaud; Lim, Jinghui
  8. Consumer Search and Retail Market Structure By Rhodes, Andrew; Zhou, Jidong
  9. Airline Price Discrimination By Stacey, Brian

  1. By: Kadam, Sudipa
    Abstract: This paper examines the relationship between the cosmetic enhancement industry and the generation of people who were born after 1980. It describes how millennial target audiences represent a significant investment opportunity for purveyors of cosmetic enhancement services and products. The paper also analyses the literature in the non-surgical facial aesthetic sector in the cosmetic enhancement industry and traces development through history as well as the need to effectively fine tune and improve its relationship with customers and media in the digital information age. The design and delivery of an interview series and online survey was undertaken to test and find a vector match for the intersection of millennial audience wants for cosmetic enhancement with their preferences for consumption of advertising, marketing and media on digital platforms. Companies that have products and services need to engage and converse effectively with millennials to ensure the market hears them and interacts in an economic sense.
    Keywords: Marketing, Female, Millennial, Generation, Target, Audiences, Cosmetic enhancement, Digital media, Target audience, Survey,
    Date: 2015
  2. By: Caroline Lancelot Miltgen (Audencia Recherche - Audencia); Gaelle Pantin-Sohier (UA - Université d'Angers); Bianca Grohmann (Concordia University - CONCORDIA UNIVERSITY)
    Abstract: This article explores the influence of food product packaging on consumers’ sensory expectations and perceived newness of the product. Two experiments examine to what extent consumers use product typicality, graphical representations, and package typicality in evaluating new food products. Study 1 finds that (1) a typical flavor induces more positive expectations of pleasantness, taste, color, and smell, and (2) the presence of graphic representation on product labels increases perceived pleasantness but does not affect sensory expectations. Study 2 indicates that the product seems newer in the absence of a package (label-only condition), but when the product packaging is presented, an atypical package conveys more newness than a typical package. These results provide practical guidelines for the design and introduction of innovative food products.
    Keywords: Communication of sensory information, consumer expectations, new food products, packaging, sensory attributes
    Date: 2015–12–21
  3. By: Caitlan Russell (School of Economics, University of Cape Town); Corne van Walbeek (SALDRU, School of Economics, University of Cape Town)
    Abstract: This paper uses price data, collected by Statistics South Africa, to estimate the effect of a change in the excise tax on the retail price of beer. We find strong evidence that the excise tax on beer is overshifted to consumers. The pass-through coefficient is estimated at 4.83 (95% CI: 4.02; 5.64) for lager, and at 4.77 (95% CI: 4.04; 5.50) for all beer (which includes dark beer). This implies that for every R1/unit increase in the excise tax, the retail price increases by about R4.80/unit. Of the 23 brand-packaging combinations considered, the pass-through coefficients vary between 2.39 and 10.05 (median = 5.30). The majority of the price change in response to a tax change occurs immediately, and prices have fully adjusted two months after the excise tax increase becomes effective. Pass-through differs substantially across packaging types. The pass-through coefficient on 750ml bottles is substantially lower than that of 330 ml (or 340 ml) cans and 6 x 330 ml (or 6 x 340 ml) "six-packs". The overshifting of the excise tax has positive implications for public health policy, since they increase the effectiveness of alcohol taxes as a tool to reduce the (excessive) consumption of beer.
    Keywords: Excise tax, Alcohol, South Africa
    Date: 2016
  4. By: Crass, Dirk; Czarnitzki, Dirk; Toole, Andrew A.
    Abstract: Most marketing practitioners and scholars agree that marketing assets such as brand equity significantly contribute to a firm's financial performance. In this paper, we model brand equity as an unobservable stock that results from up to thirty years of past brand-related investment flows. Using firm-specific trademarks as investment proxies, our results show a significant long-run impact on financial performance. The dynamic profile of brand-related investments has an inverted-U shape that reaches its peak after eleven years. On average, it takes four years before brand related investments show a positive return, and investments older than nineteen years show no significant impact. For the median trademarking firm, brand equity contributes 265,000 Euro to annual profits.
    Keywords: Brand Equity,Firm Profitability,Intellectual Property Rights,Trademarks
    JEL: O31 O34
    Date: 2016
  5. By: Amina Béji-Bécheur (IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)
    Abstract: En vingt ans, le marketing a évolué d'une approche transactionnelle à une démarche dite relationnelle. Dans ce contexte, Service-­‐Dominant Logic (SDL), proposée par Stephen Largo et Robert Lusch en 2004 , est définie par ses auteurs comme une nouvelle approche de la démarche marketing. Si l ' affirmation est forte et a donné lieu à de nombreux articles et débats , correspond-­‐elle pour autant à un renouvellement concret du marketing en termes de pratiques et de concepts ? Amina Béji-­‐Bécheur Professeur des Universités UFR de Sciences Economiques et de Gestion-­‐ IAE Gustave Eiffel Université Paris Est Marne La Vallée Selon Vargo et Lusch , le marketing a été développé pour organiser les transactions de produits manufacturés entre producteurs et consommateurs. Ses concepts s ' inscrivent dans la lignée des travaux en économie. Par la suite , le marketing des services et le marketing relationnel ont été pensés dans cette même perspective : l ' échange de biens (produits ou services) , voire d ' expériences est réalisé entre un offreur et un demandeur dont les rôles sont bien séparés et délimités (producteur versus acheteur / consommateur). SDL veut rompre avec cette approche en pensant le marketing comme « le processus de faire quelque chose pour et surtout avec quelqu ' un ». Ainsi , SDL considère le marché comme un processus de construction collective dans lequel consommateurs et producteurs participent à la création de la valeur. Dans cet esprit , la démarche marketing n ' est plus envisagée comme étant orientée vers les consommateurs (market to) mais se fait en coopération avec les consommateurs (market with) : « Le centre d ' intérêt se déplace des biens tangibles vers les biens incorporels , tels que les compétences , l ' information et la connaissance , et vers l ' interactivité et la connectivité ainsi que vers les relations en cours. L ' orientation a changé , centrée auparavant sur le producteur , elle l ' est sur le consommateur. L ' attention académique se déplace de la chose échangée avec un individu vers le processus d ' échange. La science a évolué d ' une focalisation sur les mécanismes vers l ' action de l ' individu sur la dynamique , le développement évolutionnaire , et l ' émergence de systèmes adaptatifs complexes. L ' unité d ' échange n ' est plus le bien statique et tangible » (Vargo et Lusch , 2004)
    Keywords: théories et concepts marketing, SD Logic, transformations du marketing
    Date: 2016–01
  6. By: Aizawa, Naoki (University of Minnesota); Kim, You Suk (Board of Governors of the Federal Reserve System (U.S.))
    Abstract: We study impacts of advertising as a channel of risk selection in Medicare Advantage. We show evidence that both mass and direct mail advertising are targeted to achieve risk selection. We develop and estimate an equilibrium model of Medicare Advantage with advertising to understand its equilibrium impacts. We find that advertising attracts the healthy more than the unhealthy. Moreover, shutting down advertising increases premiums by up to 40% for insurers that advertised by worsening their risk pools, which further reduces the demand of the unhealthy. We argue that risk selection may make consumers better off by improving insurers' risk pools.
    Keywords: Advertising; Health insurance; Medicare; Risk selection
    Date: 2015–11–09
  7. By: Delmas, Magali A.; Olivier, Gergaud; Lim, Jinghui
    Abstract: Eco-labels are part of a new wave of environmental policy that emphasizes information disclosure as a tool to induce environmentally friendly behavior by both firms and consumers. Little consensus exists as to whether eco-certified products are actually better than their conventional counterparts. This paper seeks to understand the link between eco-certification and product quality. We use data from three leading wine rating publications (Wine Advocate, Wine Enthusiast, and Wine Spectator) to assess quality for 74,148 wines produced in California between 1998 and 2009. Our results indicate that eco-certification is associated with a statistically significant increase in wine quality rating
    Keywords: eco-labels, credence goods, information disclosure policy, asymmetric information, product quality, Agribusiness, Demand and Price Analysis, Environmental Economics and Policy, Marketing, Q56, Q13, L15, L66, Q21,
    Date: 2016–01
  8. By: Rhodes, Andrew; Zhou, Jidong
    Abstract: This paper proposes a framework for studying how consumer search frictions affect retail market structure. In our model single-product firms which supply different products can merge to form a multiproduct firm. Consumers wish to buy multiple products and value the one-stop shopping convenience associated with a multiproduct firm. We find that when the search friction is relatively large all firms are multiproduct in equilibrium. However when the search friction is smaller the equilibrium market structure is asymmetric, with single-product and multiproduct firms coexisting. This asymmetric market structure often leads to the weakest price competition, and is the worst for consumers among all possible market structures. Due to the endogeneity of market structure, a reduction in the search friction can increase market prices and decrease consumer welfare.
    Keywords: consumer search; conglomerate merger; multiproduct pricing; one-stop shopping; retail market structure
    JEL: D11 D43 D83 L13
    Date: 2016–02
  9. By: Stacey, Brian
    Abstract: Price discrimination enjoys a long history in the airline industry. Borenstein (1989) discusses price discrimination through frequent flyer programs from 1985 as related to the Piedmont-US Air merger, price discrimination strategies have grown in size and scope since then. From Saturday stay over requirements to varying costs based on time of purchase, the airline industry is uniquely situated to enjoy the fruits of price discrimination.
    Keywords: Price Discrimination, Oligopoly
    JEL: L13
    Date: 2015–05–06

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