nep-mkt New Economics Papers
on Marketing
Issue of 2016‒05‒14
fifteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Dynamics of Price Adjustment in Qualitatively Differentiated Markets in the U.S.: The Case of Organic and Conventional Apples By Nemati, Mehdi; Saghaian, Sayed H.
  2. Sales and collusion in a market with storage By Francesco Nava; Pasquale Schiraldi
  4. Ребрендинг, как одна из стратегий маркетинга By Kharchenko, Alina
  5. An environmental tax towards more sustainable food consumption: empirical evidence of the French meat and marine food consumption By Bonnet, Céline; Bouamra-Mechemache, Zohra; Corre, Tifenn
  6. An Examination of Consumer Willingness to Pay for Local Products By Adalja, Aaron; Hansen, James; Towe, Charles; Tselepidakis, Elina
  7. Tennessee Consumers’ Willingness to Pay for Tennessee Wine By Connie, N; Christopher, N.; Kimberly, L.; David; Margarita
  8. An Evaluation of Factors Influencing Consumer Purchase Decisions of Cut Flowers: A Study of Washington Consumers By li, zongyu; McCracken, Vicki; Connolly, Jenny
  9. Особенности и эффективные методы партизанского маркетинга By Egorova, Veronika
  10. Unobserved Preference Heterogeneity in Demand Using Generalized Random Coefficients By Arthur Lewbel; Krishna Pendakur
  12. Marketing Mix Strategies and Entrepreneurial Competence: Evidence from Micro Restaurants in Calabar Metropolis, Cross River State, Nigeria. By Umeze, Gerald E.; Ohen, Susan B.
  13. The Effects of Residue Tolerance on Pesticide Use, Hop Marketing and Social Welfare By Zhang, Ruojin
  14. Consumer Preferences for Pet Health Insurance By Williams, Angelica; Coble, Keith H.; Williams, Brian; Dicks, Michael; Knippenberg, Ross
  15. Open Access as a Crude Solution to a Hold-up Problem in the Two-Sided Market for Academic Journals By Mark J. McCabe; Christopher M. Snyder

  1. By: Nemati, Mehdi; Saghaian, Sayed H.
    Abstract: Production and consumption of conventional and organic apples in the U.S. have changed dramatically over the past two decades. Despite a drop in the conventional apple production, production of organic apples shows a double-digit growth. Demand for organic apples also continues to outpace growth in overall organic fruit sales. In this research, we investigate whether these changes have an impact on price adjustment dynamics between these two qualitatively differentiated products. We use a Markov-Switching Assymetric Vector Error Ccorrection model (MS-AVECM) and weekly U.S. national retail prices for the 2010-2015 period for three varieties of apples: Gala, Fuji, and Red Delicious. The MS-AVECM results indicate three Markov-Switching regimes can be defined for the three varieties during the study period. The results show there are different short-run price adjustment daynamics in each of these regimes and asymmetric price transmission behavior between organic and conventional apples. Result indicates that apple varity plays important role in the price relationship between organic and conventional apple. These findings have implications for farmers, wholesalers, retailers, policy makers, as well as consumers.
    Keywords: Apple, Quality differentiation, Market integration, Markov Switching, Vector Error Ccorrection Model, Agribusiness, Demand and Price Analysis, D4, Q11, Q13,
    Date: 2016
  2. By: Francesco Nava; Pasquale Schiraldi
    Abstract: Sales are a widespread and well-known phenomenon documented in several product markets. This paper presents a novel rationale for sales that does not rely on consumer heterogeneity, or on any form of randomness to explain such periodic price fluctuations. The analysis is carried out in the context of a simple repeated price competition model, and establishes that firms must periodically reduce prices in order to sustain collusion when goods are storable and the market is large. The largest equilibrium profits are characterized at any market size. A trade-off between the size of the industry and its profits arises. Sales foster collusion, by magnifying the inter-temporal links in consumers' decisions.
    Keywords: storage; sales; collusion; cartel size; repeated games
    JEL: L11 L12 L13 L41
    Date: 2014–06
  3. By: Victoria, Rachel; Dharmasena, Senarath
    Abstract: There are many different types of nonalcoholic beverages available in the United States today compared to decade ago. Functionality and health dimensions of beverages have changed over the years. Currently, exotic superfruit beverages are serving as a healthier alternative to more traditional fruit juices, such as orange juice and apple juice, which contain high levels of sugar. Superfruit beverages strong emergence in the marketplace has created a major competition with traditional beverages and is providing consumers an alternative. Knowledge of price sensitivity, substitutes/complements and demographic profiling with respect to consumption of superfruit beverages is important for manufacturers, retailers, advertisers, nutritionists and other stakeholders from a competitive intelligence perspective as well as from a strategic decision-making perspective. Using nationally representative household level data from nearly 65,000 households, factors affecting the consumer demand for superfruit beverages was estimated. Moreover, we estimated own- and cross-price and income elasticities for superfruit beverages delineated by selected demographic segments, hence determine the competitiveness of superfruit beverages vis-à-vis conventional apple and orange juice. This information will reflect the market competitiveness and profiles of demographics consuming superfruit beverages in the United States.
    Keywords: Superfruit beverages, Nielsen data, consumer demand, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, D11, D12,
    Date: 2016–02
  4. By: Kharchenko, Alina
    Abstract: В данной статье рассмотрен ребрендинг, как одна из стратегий маркетинга. Проанализированы теоретические составляющие и примеры, на основе которых автор показывает актуальность использования ребрендинга. Представлена суть стратегии, выявлены сильные и слабые стороны, пути ее применения. This article describes the re-branding as one of the marketing strategies. The theoretical components and examples on the basis of which the author demonstrates the use of the urgency of re-branding. Presented are the strategies identified strengths and weaknesses, the way of its application.
    Keywords: ребрендинг, стратегия маркетинга, бизнес, бренд, логотип, лейбл, название, реклама, целевая аудитория, потребитель,re-branding, marketing strategy, business, brand, logo, label, name, advertising, target audience, the consumer.
    JEL: M0 M31 M39
    Date: 2016–05–08
  5. By: Bonnet, Céline; Bouamra-Mechemache, Zohra; Corre, Tifenn
    Abstract: After fossil fuels, agricultural production and fisheries are industries with the largest impact on the environment in terms of greenhouse gas (GHG) emissions, especially in the production of ruminant meats such as beef, veal or lamb. In order to reduce this environmental impact, consumers can change their food consumption habits to utilize less polluting products such as white meats or vegetable food products. We analyze whether or not a CO2 equivalent (CO2-eq) tax policy can change consumer habits with respect to meat and marine purchases, and using different indicators, we examine the effect of such a tax policy on the environment. We also infer the implications of such a tax on nutritional indicators as well as on consumer welfare. First, to evaluate the impact of a variation in the price of meat and marine products on consumption, we estimate a random coeficients logit demand model using purchase data from the French household panel Kantar Worldpanel. We define 28 meat and marine products, and divide them into eight meat and marine product categories. This model allows us to estimate flexible own- and cross-price elasticities of meat and marine products' demand. Results on the consumer purchase behavior model suggest that the demands for these products are fairly inelastic, and substitutions occur both within and between categories for all products. Moreover, using two levels of a CO2-eq tax (€56 and €200 per tonne of CO2-eq per kilogram of product) applied to either all meat and marine products, only ruminant meats, or only beef, we show that a tax of €56 leads to a very small change in GHG emissions, even if all meat and marine products are taxed. The most efficient scenario would be to tax only the beef category at a high level since it would allow a 70% reduction in the total variation of GHG emissions, and would be responsible for only 20% of the consumer welfare damages generated when all products are taxed.
    Keywords: meat, demand analysis, environment, greenhouse gas, CO2-eq tax, consumer diet
    Date: 2016–04
  6. By: Adalja, Aaron (University of Maryland); Hansen, James (University of Maryland); Towe, Charles (University of Connecticut); Tselepidakis, Elina (University of Maryland)
    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: conjoint analysis, field experiment, local, grass-fed, willingness to pay, beef
    Date: 2014–09
  7. By: Connie, N; Christopher, N.; Kimberly, L.; David; Margarita
    Keywords: Consumer/Household Economics, Marketing,
    Date: 2016
  8. By: li, zongyu; McCracken, Vicki; Connolly, Jenny
    Abstract: In 2013, USDA statistics indicate that at the wholesale level, 80% of fresh flowers sold in the United States are not grown in North America, but imported from other countries. Shipping flowers from those countries to the United States incurs large transportation, energy, refrigeration, and storage costs, leaving an enormous carbon footprint. These floral materials may carry residue of chemical pesticides or fungicides. Washington State is among the top ten cut flower producing states in recent years. As competition with international growers has increased the structure of the WA industry has changed resulting in more small-scale producers growing specific flowers that aren’t easily imported. Small-scale cut flower producers are mostly selling their produce directly to consumers. Fresh fruits and vegetables tend to be the most important food categories for products sold at farmers’ markets, which is one of the most popular ways for direct sales to consumers. Cut flowers are also frequently sold directly to consumers, particularly at farmers’ markets. In this study we are using a WA consumer survey to identify factors influencing consumers’ purchase decisions for cut flowers, separating the analyses into flowers purchased for personal use and for a gift. By identifying differences between purchase decision for personal use and for gift can help producers better identify market opportunities and barriers. Results Preliminary results indicate that factors affecting purchases for personal use are not exactly same as those affecting purchases for gift use. Some factors (e.g. age, income and garden ownership) had similar impacts on both types of purchase decisions. Both purchase decisions were positively impacted by the information that the cut flower was grown in Washington. Looking at the differences between the two purchase decisions, we found consumer knowledge about cut flowers affected cut flower purchase decision for personal use but not for gift use. And factors important in the purchase decision for gift use only were gender and education. All else constant, consumers more likely to buy cut flowers for gift use were males, at higher education levels, and who valued variety in cut flowers. However, consumers more likely to buy cut flowers for personal were married, and had correct knowledge about how to keep cut flower last longer.
    Keywords: Agribusiness, Agricultural and Food Policy,
    Date: 2016
  9. By: Egorova, Veronika
    Abstract: This article discusses the principles of guerrilla marketing. The author examines the characteristics of guerrilla marketing in the flower business, which can effectively promote your product to attract new customers and increase your profits without investing or not investing much money. Particular attention is paid to the effectiveness of the methods used by flower shop. В данной статье рассмотрены принципы партизанского маркетинга. Автор рассматривает особенности партизанского маркетинга в области цветочного бизнеса, которые позволяют эффективно продвигать свой товар, привлекать новых клиентов и увеличивать свою прибыль, не вкладывая или почти не вкладывая денег. Особое внимание уделено эффективным методам, которые использует магазин цветов.
    Keywords: guerilla marketing, features, methods and principles, creative approach, efficiency, low-budget ways, партизанский маркетинг, особенности, методы и принципы, креативный подход, эффективность работы, малобюджетные способы.
    JEL: M31 M37
    Date: 2016
  10. By: Arthur Lewbel (Boston College); Krishna Pendakur (Simon Fraser University)
    Abstract: We prove a new identification theorem showing nonparametric identification of the joint distribution of random coefficients in general nonlinear and additive models. This differs from existing random coefficients models by not imposing a linear index structure for the regressors. We then model unobserved preference heterogeneity in consumer demand as utility functions with random Barten scales. These Barten scales appear as random coefficients in nonlinear demand equations. Using Canadian data, we compare estimated energy demand functions with and without random Barten scales. We find that unobserved preference heterogeneity substantially affects the estimated consumer surplus costs of an energy tax.
    Keywords: unobserved heterogeneity, nonseparable errors, random utility parameters, random coefficients, equivalence scales, consumer surplus, welfare calculations
    JEL: C14 D12 D13 C21
    Date: 2015–11
  11. By: Aliu, Armando; Cilginoglu, Hakki; Özkan, Ömer; Aliu, Dorian
    Abstract: This study aims to analyze inter-stakeholders’ interactions, destination governance, reverse innovation and the tasks of central government within Turkish medical tourism market. The investigation’s objective is to shed lights on scientists and practitioners regarding to what extent medical tourism is affected by stakeholders. Likewise, the originality of this investigation is that this study is the first attempt that links up reverse innovation and stakeholder approach as a holistic strategy and competitive advantage tool in medical tourism. The statistical evidences of Turkey also support the fact that the incline of medical tourism incomes and benefits is tightly bound on key inter-stakeholders’ collaborations, marketing tools, specific strategies, effective governance mechanism and cooperation with civil society organizations. This study is a thematic case that comprises particular research fields and formulates advanced arguments that are embedded in enriched relevant literature review and the highlights of the 7th International Health Tourism Congress.
    Abstract: Bu calismanin amaci; Türk medikal turizm piyasasinda merkezi yönetimin görevleri, tersine inovasyon, destinasyon yönetisimi ve paydaslar arasi etkilesimleri analiz etmektir. Arastırmanin hedefi; bilim insanlarina ve sektördeki profesyonellere / uygulayicilara medikal turizmin paydaslar tarafindan ne dereceye kadar etkilendigi hakkinda isik tutmaktir. Ayrica, bu arastirmanin özgünlügü medikal turizmde rekabet avantaji araci ve bütünsel strateji olarak paydas yaklasimi ile tersine inovasyon arasinda baglanti kuran ilk girisim olmasidir. Türkiye’nin istatistiksel verileri de medikal turizmdeki yükselis trendinin ve faydalarinin sivil toplum kuruluslari ile isbirligi, efektif yönetisim mekanizmasi, spesifik stratejiler, pazarlama araclari ve kilit paydaslar arasi isbirliklerine sikica bagli oldugunu desteklemektedir. Bu calisma tematik bir örnek olay olup, 7. Uluslararasi Saglik Turizmi Kongresi’nde vurgulanan hususlar ile iliskilendirilmis literatür taramasina dayali olarak formüle edilmis gelismis argümanlar ve spesifik arastirma alanlarini icermektedir.
    Keywords: Medical Tourism,Reverse Innovation,Stakeholders,Collaboration,Destination Governance
    JEL: F63 H51 I11 I15 I18 M38
    Date: 2016–05
  12. By: Umeze, Gerald E.; Ohen, Susan B.
    Abstract: The paper assessed the utilization of marketing mix strategies and entrepreneurial competencies of micro restaurant owners in Calabar metropolis. Proportionate random sampling was used to select 132 restaurants which formed the sample of the study. Results showed that preparing quality/tasty meal was the most utilized marketing mix factor with mean value of 3.85. On entrepreneurial competence, relationship competence recorded the highest mean score of 3.92. A significant Chi Square (χ2) value of 10.739 indicated that there was an association between the use of marketing mix strategies and entrepreneurial competencies of the business owners. Kendall’s coefficient of concordance (w) value of 0.31 proved that there is a reasonable degree of agreement among the respondents regarding the ranking of the constraints facing their enterprises. The study recommended consistent application of 7Ps marketing mix strategies to eliminate most of the constraints identified by the operators and continuous capacity building on entrepreneurial skills.
    Keywords: Entrepreneurial Competence, Marketing Mix Strategies, Micro Enterprises, Restaurant., International Development, Marketing, Q13,
    Date: 2015
  13. By: Zhang, Ruojin
    Abstract: Pesticide use can mitigate production risks from pest and disease infestations. However, intensive pesticide use may result in large amount of pesticide residues, causing hop-quality damages and raising food safety issues. Pesticide use also leads to sizable negative ecological and environmental externalities. In respond to food safety and other socio-economic issues, policy makers, such as national governments and international organizations, pursue low pesticide residues by implementing tolerance which permits only a maximum concentration of agrichemical residues. This paper examines the social-economic impacts of the residue tolerance. To this end, a four-stage game theoretic model is outlined to characterize the stylized attributes of both domestic hop production and marketing. The model highlights the strategic interactions between hop growers, hop merchant and the government. Multiple market equilibria are characterized. The analysis contributes to a better understanding of social welfare which accommodates the environmental externalities of pesticide use. Simulations are conducted based on hop production information in the Pacific Northwest of the United States.
    Keywords: Expected utility, hop production, input decision, production risk, social welfare, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, D81, D04, Q16,
    Date: 2016
  14. By: Williams, Angelica; Coble, Keith H.; Williams, Brian; Dicks, Michael; Knippenberg, Ross
    Abstract: This study uses a choice experiment survey to examine pet owner’s preferences for Pet Health Insurance policies. Our results indicate that pet insurance premium, reimbursement level, unlimited benefits and wellness included in pet health insurance plan have significant effects on pet owners' purchase decisions.
    Keywords: Health Economics and Policy, Institutional and Behavioral Economics,
    Date: 2016
  15. By: Mark J. McCabe; Christopher M. Snyder
    Abstract: The move from traditional to open-access journals—which charge no subscription fees, only submission fees—is gaining support in academia. We analyze a two-sided-market model in which journals cannot commit to subscription fees when authors (who prefer low subscription fees because this boosts readership) make submission decisions. This leads to a hold-up problem, manifested as excessive subscription fees. Open access is a crude attempt to avoid hold up by eliminating subscription fees. We compare the efficiency and profitability of traditional versus open access under various market structures (monopoly, Bertrand competition) and extensions (non-profit journals, bundling, hybrid pricing), using our theoretical findings to understand the evolution of the market for academic journals in the Internet age.
    JEL: D40 L14 L31 L82
    Date: 2016–05

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