nep-mkt New Economics Papers
on Marketing
Issue of 2016‒04‒16
nineteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. The Role of Social Media in Tourism By Tugay ARAT
  2. The "Veblen" Effect, Targeted Advertising and Consumer Welfare By Lynne Pepall; Joseph Reiff
  3. Non-sequential search, competition and price dispersion in retail electricity By Gugler, Klaus; Heim, Sven; Liebensteiner, Mario
  4. Media coverage and car manufacturers' sales By Dewenter, Ralf; Heimeshoff, Ulrich; Thomas, Tobias
  5. How social enterprise attract public awareness using storytelling By Wan-Tzu Lin; Shyhnan Liou
  6. Empirical Evidence on Conditional Pricing Practices By Bogdan Genchev; Julie Holland Mortimer
  7. Substitution between Online and Offline Advertising: Evidence from the Carbonated Soft Drink Industry By He, Xi; Lopez, Rigoberto A.; Liu, Yizao
  8. When Tom Cruise said: “You complete me!†By Pragyan Rath
  9. Human, Lean, Green concept and increasing number of consumers – wind farm example By Nicoletta Baskiewicz; Aneta Pachura
  10. Are Online and Offine Prices Similar? Evidence from Large Multi-Channel Retailers By Alberto F. Cavallo
  11. Does the Nature of Piracy and Competition Matter? By Yuanzhu Lu; Sougata Poddar
  12. Service employees and self-verification: the roles of occupational stigma consciousness and core self-evaluations By Amanda Shantz; Jonathan E. Booth
  14. Term Structures of Asset Prices and Returns By David Backus; Nina Boyarchenko; Mikhail Chernov
  15. The Real Effects of Liquidity During the Financial Crisis: Evidence from Automobiles By Efraim Benmelech; Ralf R. Meisenzahl; Rodney Ramcharan
  16. BEVs and PHEVs in France: Market trends and key drivers of their short-term development By Eleonora Morganti; Virginie Boutueil; Fabien Leurent
  17. The Impact of the Great Recession on Families with Children By Watson, Dorothy; Whelan, Christopher T.; Maître, Bertrand; Williams, James
  18. Dimensions of the COO Effect Referring to Services and Products – Polish-Lithuanian Comparisons By Monika Boguszewicz-Kreft; Ewa Magier-Šakomy; Katrzyna Sokołowska; Brigita Janiunaite
  19. Corporate social responsibility in a competitive business environment By Carol Newman; John Rand; Finn Tarp; Neda Trifkovi.

  1. By: Tugay ARAT (Selcuk University, Faculty Of Tourism)
    Abstract: As a result of the developments in information and communication Technologies, and their widely and densely use new marketing mediums have recently emerged. A number of platforms have also appeared in product preference in terms of consumers. The masses communicate with each other on social media. Firms are looking for the ways of affecting the preferences of customers, and they use social media as a marketing environment. Today, the competition between firms has raised, therefore most firms find traditional marketing methods inadequate in reaching to their customers. Therefore, they aim to take action in every environment in which customers exist. This situation causes producing firms to; conduct marketing activities in a more number of ways in digital or virtual media. In recent years, in tourism industry hotel services also use social media for purposes such as effective advertisement, reaching more customers and building brand loyalty. Through social media, tourism services can reach to more customer faster. Besides, customers can also quickly reach to tourism services through their social media accounts in the stages of information searching, assessment of alternatives, selecting choices and purchasing. The aim of this study is to explain how hotel services manage their Facebook accounts and which features they use, and to bring forward proposals. For this reason, Facebook accounts of these hotel services has been studied through content analysis method.
    Keywords: Tourism, Communication Technologies, Social Media
    JEL: M30
  2. By: Lynne Pepall; Joseph Reiff
    Abstract: The technology of advertising in the twenty-first century allows for better targeting of consumers and better identification of consumer subgroups in the population. This makes it easier for firms to create in their advertising a desire to belong to the group identified with a product. We explore this kind of advertising in a monopoly model. The firm has an incentive to target this kind of advertising to the most lucrative segment of a particular social grouping and while advertising does create value for the consumer, it leads to an outcome where less output is sold at a higher price in a narrower or more segmented market than in the standard monopoly model. As a result even though consumers value the identification effect they are worse off. This is because the firm uses advertising to exploit a form of price discrimination and appropriate more surplus.
    Keywords: Targeted Advertising, Peer Effects, Monopoly
    JEL: L12 M3
  3. By: Gugler, Klaus; Heim, Sven; Liebensteiner, Mario
    Abstract: We investigate the impact of consumer search and competition on pricing strategies in Germany's electricity retail. We utilize a unique panel dataset on spatially varying search requests at major online price comparison websites to construct a direct measure of search intensity and combine this information with zip code level data on electricity tariffs between 2011 and 2014. The paper stands out by explaining price dispersion by differing pricing strategies of former incumbents and entrant firms, which are distinct in their attributable shares in informed versus uninformed consumers. Our empirical results suggest causal evidence for an inverted U-shape effect of consumer search intensity on price dispersion in a clearinghouse environment as in Stahl (1989). The dispersion is caused by opposite pricing strategies of incumbents and entrants, with incumbents initially increasing and entrants initially decreasing tariffs as a reaction to more consumer search. We also find an inverted U-shape effect of competition on price dispersion, consistent with theoretical findings by Janssen and Moraga-González (2004). Again, the effect can be explained by opposing pricing strategies of incumbents and entrants.
    Keywords: Search,Information,Competition,Price Dispersion,Electricity Retail
    JEL: D43 D83 L11 L13 Q40
    Date: 2016
  4. By: Dewenter, Ralf; Heimeshoff, Ulrich; Thomas, Tobias
    Abstract: A wide range of media provide information on many products based on reviews or expert opinions. The effects of such information on product sales is analyzed in a small but growing literature in economics and marketing science. However, there is much more coverage on companies and products in the media than product reviews and expert opinions. Based on a unique dataset, we test whether coverage of car manufacturers in opinion leading media have significant impact on registrations of new cars in Germany. We find that positive (or at least neutral) media coverage has statistically significant effect on the number of new cars sold by several leading manufacturers on the German car market.
    Date: 2016
  5. By: Wan-Tzu Lin (Institute of Creative Industries Design, National Cheng Kung University); Shyhnan Liou (Institute of Creative Industries Design, National Cheng Kung University)
    Abstract: Growing social enterprise seeks for innovation ways to reverse and challenge conventional thoughts in recent years for the purpose to meet the market demand while creating social value and exert influence. To this end, they face not only in property damage but also in positive contribution. However, the stakeholders of the public always are unfamiliar with social enterprise and ready for understand what they promote. They often put a label on them-false welfare, true enrichment with high ethical standards. Thus, how to communicate with the public on the social issues is the critical challenge of this social innovation. We argued that stories are good ways for sharing and convey value for social issues. Stories can represent experience, storytelling can coordinate human past, projects the future, thus resonates in the communication and then recognized with reality consensus. Social enterprise uses storytelling to create value and impress audiences to see, feel it, and then remember it in mind. This study aims to explore how to tell story in order to help social enterprise to convey values and efficiently diffuse its influence to the social dimension. Using cases study and review models of storytelling, the present study first identified the key elements of storytelling in promoting marketing of social enterprise. We found that the fundamental cause of the development of a thing lies in its internal story. The story structure includes the truth, experience, and behavior pattern shape of an organization. We also develop the effect process of storytelling should comprise stages which are control analysis, core spirit of social value, content analysis with adequate data to create deeper insight, just show it in the media, target specific objects, and get the audience involved. The story may have an unspeakably emotional motivation behind each sale in marketing. We propose that using storytelling to express the core of their emotions is not a persuasion but a deep interpersonal link. A good story is touching and borderless, and a culture in the deepest times is common and overall about people. Telling a story is an important and a must-have capability for business with the booming of the Internet and the growth of social media. Last, we examine our proposed model by testing with general audience and experts in marketing and social entrepreneurs.
    Keywords: Social enterprise, Social entrepreneurs, Storytelling, Marketing
  6. By: Bogdan Genchev (Boston College); Julie Holland Mortimer (Boston College)
    Abstract: Conditional pricing practices allow the terms of sale between a producer and a downstream distributor to vary with the ability of the downstream firm to meet a set of conditions put forward by the producer. The conditions may require a downstream firm to accept minimum quantities or multiple products, to adhere to minimum market-share requirements, or even to deal exclusively with one producer. The form of payment from the producer to the downstream firm may take the form of a rebate, marketing support, or simply the willingness to supply inventory. The use of conditional pricing practices is widespread throughout many industries, and the variety of contractual forms used in these arrangements is nearly as extensive as the number of contracts.
    Keywords: conditional pricing, terms of sale, downstream firm
    JEL: K11 K21 L4 L42
    Date: 2016–02–15
  7. By: He, Xi (University of Connecticut); Lopez, Rigoberto A. (University of Connecticut); Liu, Yizao (University of Connecticut)
    Abstract: This paper uses data collected from hypothetical and non-hypothetical choice-based conjoint survey instruments to estimate willingness to pay for distance-based local food products. The survey was administered to three different groups of respondents: members of a consumer buying club with local and grass-fed market experience, a random sample of Maryland residents, and shoppers at a non-specialty suburban Maryland grocery store. We find that both the random sample of Maryland residents and the grocery store shoppers are willing to pay a premium for local products, but view local and grass-fed production as substitutes. Conversely, members of the consumer buying club are willing to pay significantly less for local than their counterparts, but do not conflate local with other premium attributes, such as grass-fed production.
    Keywords: Online advertising, media substitution, translog cost function, CSDs
    JEL: L13 M37 D12
    Date: 2015–07
  8. By: Pragyan Rath (Indian Institute of management Calcutta)
    Abstract: The researcher collates a set of proposal lines from mainstream Hollywood movies, and through the symbolic lens, attempts to understand the profit that such artistic endeavors contribute, through the political unconscious of the consumer, to the furtherance of the economic system they are a product of. The correlation of Modern Art, Branding, Maslow’s Hierarchy and Feminism with the popular proposals reveals the strategic positioning of self-actualization as a valid economic capital. Eventually the researcher contends that self-actualization is nothing but sublime self-esteem. In the process she also derives a new communication technique that is a powerful tool for persuasive communication.
    Keywords: Proposals, Modern Art, Maslow’s hierarchy, Branding, Feminism, Symbolic Technique
    JEL: Z11 M30 M31
  9. By: Nicoletta Baskiewicz (Technical University of Częstochowa, Faculty of Management); Aneta Pachura (Technical University of Częstochowa, Faculty of Management)
    Abstract: Modern enterprises constantly search for activities aimed at efficiency increase. Between centuries, new system solutions started to emerge, involving manufacturer's responsibility not only for the quality of processes and resulting products. The enterprises have been obliged to take responsibility for the product whole life cycle, for the environment and following rules of sustainable growth. This study aim is to present Human Lean, Green concepts, with their determining factors and presentation of this concept empiric implementation. Because of obvious limitations of this paper only Green concept example will be shown herein. Wind energy generation and use will be used, with its influence on enterprise competitiveness. This thesis will be then verified in terms of proving how renewable energy sources use in a jewellery shop influences growth of potential customers number and whether it is profitable in Polish conditions.
    Keywords: Human Lean, Green concepts, sustainable growth, wind energy.
    JEL: A10 A12 A19
  10. By: Alberto F. Cavallo
    Abstract: Online prices are increasingly being used for a variety of inflation measurement and research applications, yet little is know about their relation to prices collected offline, where most retail transactions take place. This paper presents the results of the first large-scale comparison of online and offline prices simultaneously collected from the websites and physical stores of 56 large multi-channel retailers in 10 countries. I find that price levels are identical about 72% of the time for the products sold in both locations, with significant heterogeneity across countries, sectors, and retailers. The similarity is highest in electronics and clothing and lowest for drugstores and office-supply retailers. There is no evidence of prices varying with the location of the ip address or persistent browsing habits. Price changes are un-synchronized but have similar frequencies and average sizes. These results have implications for National Statistical Offices and researchers using online data, as well as those interested in the effect of the internet on retail prices in different countries and sectors.
    JEL: E31 F4 L1
    Date: 2016–03
  11. By: Yuanzhu Lu (China Economics and Management Academy, Central University of Finance and Economics, Beijing, China); Sougata Poddar (Department of Economics, Faculty of Business and Law, Auckland University of Technology)
    Abstract: We explore whether the nature of piracy or the counterfeiting activity and the competition between the copyright holder and the pirate(s) matter in a given regime of Intellectual Property Right (IPR) protection. Generally, the nature of piracy can be of two types, commercial and end-user; and the nature of competition between copyright holder and if the pirate is commercial can be either in price or quantity depending on the pirated good. We find irrespective of the nature of piracy or competition, when the consumers’ tastes are sufficiently diverse and IPR protection is weak, it is profitable for the copyright holder to accommodate the pirate(s), while deter the pirate(s) in all other situations. The relationship between the quality of pirated good and piracy rate can be monotonic or non-monotonic. Piracy is more likely to survive under commercial piracy than under end-user piracy. The relationship between private and public anti-piracy measures is non-monotonic.
    Keywords: IPR protection, private copyright protection, piracy rate, product quality, commercial piracy, end-user piracy
    JEL: D23 D43 L13 L86 O3
    Date: 2015–04
  12. By: Amanda Shantz; Jonathan E. Booth
    Abstract: Despite the growing number and importance of service occupations, we know little about how jobholders’ perceptions of societal stigmas of service jobs influence their identification with and attitudes towards work. The present study presents a framework that accords key roles to research on occupational stigma consciousness and the verification of employees’ self-views (i.e. core self-evaluations) to understand employees’ responses to occupational stigmatization. Survey responses from call center employees revealed a negative relationship between occupational stigma consciousness and occupational identification and work meaningfulness and a positive relationship between occupational stigma consciousness and organizational production deviant behaviors for employees who have a positive self-view. Opposite patterns of results surfaced for employees who have a lower positive self-view.
    Keywords: occupational stigma consciousness; core self-evaluations; occupation identification; work meaningfulness; organizational production deviant behaviors
    JEL: J50
    Date: 2014–12
  13. By: Oksana Seroka-Stolka (Czestochowa University of Technology); Justyna Lukomska-Szarek (Czestochowa University of Technology)
    Abstract: Nowadays, many companies are under pressure to take care about the natural environment. However, companies differ from one to another because of their response to natural environment. For this reason companies implement different environmental strategies. The literature indicates a continuum range from passive to proactive strategies. The proactive strategies are typical for companies that voluntarily take measures to reduce their impact on the natural environment. The reasons for a lack of environmental proactive strategies are very complex. Some of the factors both from outside and inside the firms discourage them to implement proactive environmental strategies. The aim of the article is to present the influence of external and internal barriers perceived by managers which inhibit implementing the proactive environmental strategies in Polish companies because of the gap of knowledge.
    Keywords: Keywords: proactive environmental strategies, proactivity, barriers, companies.
    JEL: Q01
  14. By: David Backus; Nina Boyarchenko; Mikhail Chernov
    Abstract: We explore the term structures of claims to a variety of cash flows: US government bonds (claims to dollars), foreign government bonds (claims to foreign currency), inflation-adjusted bonds (claims to the price index), and equity (claims to future equity indexes or dividends). Average term structures reflect the dynamics of the dollar pricing kernel, of cash flow growth, and of their interaction. We use simple models to illustrate how relations between the two components can deliver term structures with a wide range of levels and shapes.
    JEL: G12 G13
    Date: 2016–04
  15. By: Efraim Benmelech; Ralf R. Meisenzahl; Rodney Ramcharan
    Abstract: Illiquidity in short-term credit markets during the financial crisis might have severely curtailed the supply of non-bank consumer credit. Using a new data set linking every car sold in the United States to the credit supplier involved in each transaction, we find that the collapse of the asset-backed commercial paper market reduced the financing capacity of such non-bank lenders as captive leasing companies in the automobile industry. As a result, car sales in counties that traditionally depended on non-bank lenders declined sharply. Although other lenders increased their supply of credit, the net aggregate effect of illiquidity on car sales is large and negative. We conclude that the decline in auto sales during the financial crisis was caused in part by a credit supply shock driven by the illiquidity of the most important providers of consumer finance in the auto loan market. These results also imply that interventions aimed at arresting illiquidity in short-term credit markets might have helped to contain the real effects of the crisis.
    JEL: G01 G23 L62
    Date: 2016–04
  16. By: Eleonora Morganti (IFSTTAR/AME/SPLOTT - Systèmes Productifs, Logistique, Organisation des Transports et Travail - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - PRES Université Paris-Est); Virginie Boutueil (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - École des Ponts ParisTech (ENPC) - UPEM - Université Paris-Est Marne-la-Vallée - PRES Université Paris-Est); Fabien Leurent (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - École des Ponts ParisTech (ENPC) - UPEM - Université Paris-Est Marne-la-Vallée - PRES Université Paris-Est)
    Abstract: This interim report for Task 4.1 looks into the current sales and market trends for electric vehicles worldwide, as well as in several European countries, and brings out a set of factors that are likely to influence the French market for PEVs in the short term (2020). We identify three main factors as key drivers of the uptake of PEVs in Europe and in France in the near-term future : - Technology improvements and purchase subsidies to reduce the retail price of PEVs ; - Standardisation throughout Europe, as defined by the 2014 EU Directive on the deployment of alternative fuels infrastructure, to lay the ground for wider consumer acceptance ; and - Deployment of fast-charging infrastructure (together with conventional and semi-fast chargers), to reduce “range anxiety” and to promote the use of PEVs for long-distance trips.
    Keywords: fast-charging,electric vehicles, charging infrastructure
    Date: 2015–04
  17. By: Watson, Dorothy; Whelan, Christopher T.; Maître, Bertrand; Williams, James
    Date: 2015–09
  18. By: Monika Boguszewicz-Kreft (WSB University in Gdańsk); Ewa Magier-Šakomy (WSB University in Gdańsk); Katrzyna Sokołowska (WSB University in Gdańsk); Brigita Janiunaite (Kaunas University of Technology)
    Abstract: The COO effect is defined as an influence of an image of a particular country on the assessment of products and services coming from a given country with ensuing consumer attitudes and behavior. The article presents further adaptation of the models discussed in the literature in order to find universal attributes which would be adequate to the deeper analysis of the COO. The analyzed model of COO effect consists of the following dimensions: innovativeness, diversity, prestige quality. The following hypotheses were verified. (1)The COO dimensions influence the assessment of offers (products and services), (2) consumer’s country of origin influences the assessment in respect of the particular COO dimensions. To analyze a data collected in Poland and Lithuania the analysis of regression has been applied. Results show that country of consumer origin has got a stronger impact on assessment of offer comparing to COO’s dimensions. However it has been indicated that the assessment of products and services is differentiated, depending on the assumed COO dimensions. And some additional results indirectly show the multi-dimensional nature of the COO.
    Keywords: country-of-origin (COO) effect, the dimensions of the COO effect, consumers’ behavior, services marketing
    JEL: A10
  19. By: Carol Newman; John Rand; Finn Tarp; Neda Trifkovi.
    Keywords: poverty measurement, utility consistency, cost of basic needs
    Date: 2016

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