nep-mkt New Economics Papers
on Marketing
Issue of 2016‒04‒30
thirteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Chinese Consumer Willingness to Pay for Pork with Credence Quality Attributes By Dong, Hao; Hu, Wuyang
  2. Determining the Impact of State-Specific Signs and Labels on Tomato Marketing By Cao, Xiang; House, Lisa; Gao, Zhifeng; Guan, Zhengfei
  3. Buying Your Way into a Healthier Lifestyle: A Latent Class Analysis of Healthy Food Purchases By Segovia, Michelle; Palma, Marco
  4. Noisy Information Signals and Endogenous Preferences for Labeled Attributes By Liaukonyte, Jura; Streletskaya, Nadia; Kaiser, Harry
  5. The price Ain’t right? hospital prices and health spending on the privately insured By Zack Cooper; Stuart Craig; Martin Gaynor; John Van Reenen
  6. Evaluating the Marketing Impact of a Regional Branding Program Using Contingent Valuation Methods: The Case of the Appalachian Grown™ Branding Program By Aborisade, Olumide; Carpio, Carlos E.; Mathews, Leah; Boonsaeng, Tullaya; Perrett, Allison; Descieux, Katie
  7. Forecasting Meat Prices using Consumer Expectations from the Food Demand Survey (FooDS) By Ates, Aaron M.; Lusk, Jayson L.; Brorsen, B. Wade
  8. Identifying the preferences and heterogeneity of consumer groups in multiplayer video games By Daniel Kaimann; Nadja Maraun; Joe Cox
  9. Adopting content marketing in IT startups given business knowledge and financial constraints: Evidence from Portugal and Egypt By Dina Mohamed Khaled Mansour; Hortênsia Maria da Silva Gouveia Barandas
  10. Consumer Preference for Sampling at Farmers Markets By Chen, Lijun; Parcell, Joe; Moreland, Jill
  11. Characteristics of U.S. Organic Fresh Produce Consumers: A Double Hurdle Model Approach By Chen, Bo; Saghaian, Sayed H.
  12. Who benefits from the rapidly increasing Voluntary Sustainability Standards? Evidence from Fairtrade and Organic coffee in Ethiopia By Minten, Bart J.; Dereje, Mekdim; Engeda, Ermias; Tamru, Seneshaw
  13. Analyzing Consumer Demand During A Food Scandal: The Case of Dioxin Contaminated Feed in Germany And The Media By Rieger, Jorg; Kuhlgatz, Christian

  1. By: Dong, Hao; Hu, Wuyang
    Abstract: Food labeling has become increasingly important in pork marketing. Various labels such as local production, organic, and non-GMOs are reported as being valued by consumers across different countries and cultures. China is the largest pork consumer and producer in the world. However, studies on Chinese consumer perception and willingness to pay for various pork attributes are scarce. This study examines how credence attributes related to pork quality may affect Chinese consumers’ pork consumption. Results show that Chinese consumers are particularly responsive to pork’s food safety information and they also attach value to authenticity of the product information.
    Keywords: Willingness To Pay, Consumer Preference, Pork, China, Credence Quality Attributes, Consumer/Household Economics,
    Date: 2016
  2. By: Cao, Xiang; House, Lisa; Gao, Zhifeng; Guan, Zhengfei
    Abstract: The technological shock from the methyl bromide phase-out and the intense competition from Mexico have posed serious threats and challenges to the Florida tomato industry. This paper provides the struggling US tomato industry with marketing information to understand consumer demand and willingness to pay for local (Florida/US) tomatoes versus non-local (Mexico) tomatoes. In addition, the effect of three market strategies on consumer preferences for Florida/US versus Mexico tomatoes is also studied. A mall intercept survey experiment using the contingent valuation method to interview 632 participants was conducted to determine US consumer’s perception about country of origin labeling, consumption pattern, demand, and willingness to pay for Florida/US and Mexico tomatoes.
    Keywords: contingent valuation method, country of origin labeling, ordinal logistic model, simultaneous equations, tomato, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2016–01
  3. By: Segovia, Michelle; Palma, Marco
    Abstract: A non-hypothetical second-price Vickrey auction was conducted to elicit consumer preferences and willingness to pay for vegetable attributes, including production technique, origin, taste, and health benefits. Using a Latent Class Analysis (LCA) we segmented participants based on health-driven motivations, willingness to pay estimates, and socio-economic characteristics. Two latent classes were found and characterized as: “Health Conscious”, and “Health Redeemers”. In particular, the “Health Conscious” consumers presented healthy lifestyle habits, expressed price premiums for domestic and local-specialty food products after a blind tasting treatment, but they did not have price premiums for health benefits of the products. On the contrary, the “Health Redeemers” presented unhealthy lifestyles but they were willing to pay more for healthy food products, perhaps in an attempt to make up for their unhealthy habits.
    Keywords: credence attributes, functional foods, health behaviors., Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, I12,
    Date: 2015
  4. By: Liaukonyte, Jura; Streletskaya, Nadia; Kaiser, Harry
    Abstract: Consumer preferences for labeled products are often assumed to be exogenous to the presence of labels. However, the label itself (and not the information on the label) can be interpreted as a noisy warning signal. We measure the impact of “Contains” labels and additional information about the labeled ingredients, treating preferences for labeled characteristics as endogenous. We find that for organic food shoppers, the “Contains” label absent additional information serves as a noisy warning signal leading them to overestimate the riskiness of consuming the product. Provision of additional information mitigates the large negative signaling effect of the label.
    Keywords: Demand Shifts and Rotations, Experimental Economics, Labeling, Signaling effect, Willingness-to-Pay, Agricultural and Food Policy, Labor and Human Capital, L13, C21, M31, Q13, Q18,
    Date: 2015
  5. By: Zack Cooper; Stuart Craig; Martin Gaynor; John Van Reenen
    Abstract: We use insurance claims data for 27.6 percent of individuals with private employer-sponsored insurance in the US between 2007 and 2011 to examine the variation in health spending and in hospitals’ transaction prices. We document the variation in hospital prices within and across geographic areas, examine how hospital prices influence the variation in health spending on the privately insured, and analyze the factors associated with hospital price variation. Four key findings emerge. First, health care spending per privately insured beneficiary varies by a factor of three across the 306 Hospital Referral Regions (HRRs) in the US. Moreover, the correlation between total spending per privately insured beneficiary and total spending per Medicare beneficiary across HRRs is only 0.14. Second, variation in providers’ transaction prices across HRRs is the primary driver of spending variation for the privately insured, whereas variation in the quantity of care provided across HRRs is the primary driver of Medicare spending variation. Consequently, extrapolating lessons on health spending from Medicare to the privately insured must be done with caution. Third, we document large dispersion in overall inpatient hospital prices and in prices for seven relatively homogenous procedures. For example, hospital prices for lower-limb MRIs vary by a factor of twelve across the nation and, on average, two-fold within HRRs. Finally, hospital prices are positively associated with indicators of hospital market power. Even after conditioning on many demand and cost factors, hospital prices in monopoly markets are 15.3 percent higher than those in markets with four or more hospitals.
    Keywords: healthcare; health spending; prices; price dispersion; competition; market structure
    JEL: J1
    Date: 2015–12
  6. By: Aborisade, Olumide; Carpio, Carlos E.; Mathews, Leah; Boonsaeng, Tullaya; Perrett, Allison; Descieux, Katie
    Abstract: The main objective of this study was to develop and test effective messaging and marketing efforts for the Appalachian Grown™ regional branding program. The study included the following activities: 1) A pilot consumer survey to design and evaluate messages and promotional materials to be used in the marketing campaign, 2) Pre and post intervention consumer surveys, and 3) Implementation of the marketing campaign in three stores in the region. The evaluation of the impact of the marketing efforts utilized contingent valuation methods. Our results indicate that consumers’ willingness to pay may be positively impacted by the implementation of in-store local food marketing campaigns. We also identified criteria of trustworthiness, including information about farm name and location, which local food marketing campaigns should consider implementing in the future.
    Keywords: local food, willingness to pay, Agribusiness, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2016–01–22
  7. By: Ates, Aaron M.; Lusk, Jayson L.; Brorsen, B. Wade
    Abstract: This research seeks to determine whether a new source of data from a monthly, nationwide survey of food consumers, the Food Demand Survey (FooDS), is a leading indicator of meat prices included in the Bureau of Labor Statistics (BLS) Consumer Price Index. This study relies on consumers’ expectations about prices increasing or decreasing. For most meats studied, survey-based consumer price expectations Granger cause retail meat prices. Because the BLS releases price data with a lag, the survey data can be used as a leading indicator to project future retail price changes two times before the official government reports are released.
    Keywords: Granger causality, leading indicator, price expectation, Food Demand Survey (FooDS), Demand and Price Analysis, Marketing, Q11, Q13, D84,
    Date: 2016
  8. By: Daniel Kaimann (Paderborn University); Nadja Maraun (Paderborn University); Joe Cox (Portsmouth Business School)
    Abstract: Video games are high-involvement products with multiplatform and multiplayer characteristics, which aim to enhance consumer utility by providing opportunities for ‘playful consumption’. However, relatively little research has previously been undertaken into preferences for playful consumption, particularly in the context of multiplayer video games. This study addresses this deficiency in the literature through the analysis of data from a popular online game that includes historic behavioral data for 7 million consumers participating in 868,000 unique game rounds. Our analysis of these data identify the behavioral preferences of consumers in order to identify the factors associated with variations in consumer participation and engagement. We show that consumers value opportunities for score enhancement, with a preference for combat rather than non-combat actions. However, our findings also suggest that consumers value variety and heterogeneity as part of the experience, suffering disutility from factors such as the absence of particular player-roles or vehicle use within a given round. Our results represent the first such evidence on ‘in-game’ consumer preferences and the optimization of the video gaming experience, which has important implications for player matching, utility and willingness to pay for additional content.
    Keywords: Preferences, Video game industry, Cultural goods, Multiple regression analysis
    JEL: C33 D12 L82 Z10
    Date: 2016–02
  9. By: Dina Mohamed Khaled Mansour (University of Porto); Hortênsia Maria da Silva Gouveia Barandas (University of Porto)
    Abstract: The growing proliferation of online content and the importance of being found online has inspired practitioners to purposefully develop and target this content until the content marketing concept was born. Technical entrepreneurs who run IT startups without business training can incorporate content marketing into their online marketing plans as they acquire self-taught business management skills. Through an exploratory multiple case study approach, the nature of online marketing activities performed in a group of ten IT startups in Portugal and Egypt is examined, in addition to the familiarity of the concept of content marketing and the key challenges faced. Results demonstrate that even though technical entrepreneurs are heavily oriented towards technology and tend to ignore marketing, they are capable of capitalizing on their challenges and can perform online and content marketing within financial and business knowledge constraints. The study advances the incumbent knowledge about IT startups and the way technical entrepreneurs view and conduct marketing. More importantly the study addresses content marketing as an empirically tested concept.
    Keywords: Content marketing, IT startups, Technical entrepreneurs, Multiple case studies, Portugal, Egypt.
    Date: 2016–03
  10. By: Chen, Lijun; Parcell, Joe; Moreland, Jill
    Abstract: From a survey of farmers’ markets shoppers,this study aims to investigate the factors that differentiate samplers and non-samplers,factors that motivate and discourage consumers to take free samples presented by vendors,and estimate to what extent sampling affects consumer behavior and perceptions about products. A survey questionnaire was conducted yielding 1145 usable responses. A simultaneous equation model and exploratory factor analysis assessment was conducted. Results show that consumers’ trust in farmers’ markets food system have a significant impact on sampling decisions,and affiliation towards persons distributing samples motivate consumers to sample. The post sampling effect can be reflected by consumers’ immediate purchase,generating word of mouth and an increase in unplanned purchase.
    Keywords: Sampling, Farmers’ Markets, Consumer Preference, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing,
    Date: 2016
  11. By: Chen, Bo; Saghaian, Sayed H.
    Abstract: The organic food market has been in a upward trend and the continuous success of the organic industry lies on a solid understanding of the consumers. This article offers a timely update of the characteristics of the organic consumers with the Nielsen Homescan Consumer Panel. Income is a key factor in the decision of consumers organic market participation yet it does not affect the consumption level of the existing organic consumers. Younger age and more education not only contribute to more consumer participation but also increase the existing consumption level. Moreover, consumption pattern differ across different family features, races and regions.
    Keywords: Consumer characteristics, organic food, hurdle model, scanner data, Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2016
  12. By: Minten, Bart J.; Dereje, Mekdim; Engeda, Ermias; Tamru, Seneshaw
    Abstract: Voluntary Sustainability Standards (VSS) are rapidly increasing in global value chains. While consumers (mostly in developed countries) are willing to pay significant premiums for such stand-ards, it is however not well understood how effective these incentives are transmitted to producing countries. We study VSS in Ethiopia’s coffee sector, its most important export commodity, using a unique census of transaction data at the export level and large-scale data at the production level. We find that transmission of the export quality premiums to coffee producers is limited, with only one-third of this premium being passed on. Moreover, as quality premiums are small and with low average production levels from coffee farmers in these settings, these premiums would only lead to an increased income of 20 USD per year even with a perfect transmission scenario, and would therefore have little effect on the livelihoods of an average coffee farmer.
    Keywords: Environmental Economics and Policy, International Development, International Relations/Trade,
    Date: 2015
  13. By: Rieger, Jorg; Kuhlgatz, Christian
    Abstract: This study investigates the effect of media coverage on the consumer demand for pork chops and chicken filet in the course of the German dioxin scandal in 2011. A media index is constructed to account for the dynamics of the media coverage for the first nineteen calendar weeks in 2011. The response of the German households is estimated with a dynamic correlated random effect Tobit model based on weekly panel data provided by the GfK and data on media coverage provided by Lexis Nexis. Our dataset contains detailed information on purchasing transactions and socio-economic characteristics of the consumer households. The empirical results show that unobserved heterogeneity is important to consider when analyzing the determinants of demand in times of a scandal. For both meat products, media had a significant negative effect on the propensity to consume as well as the quantity purchased.
    Keywords: Dynamic correlated random effects Tobit model, consumer demand, media, food scandal, panel data, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, L15, Y90,
    Date: 2015

This nep-mkt issue is ©2016 by João Carlos Correia Leitão. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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