nep-mkt New Economics Papers
on Marketing
Issue of 2016‒05‒21
eight papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Willingness to Pay for Retail Location and Product Origin of Christmas Trees By Zaffou, Madiha; Campbell, Benjamin
  2. Integrating sensory evaluations in incentivized discrete choice experiments to assess consumer demand for cricket flour buns in Kenya By Mohammed H. Alemu; Søren Bøye Olsen; Suzanne E. Vedel; John Kinyuru; Kennedy O. Pambo
  3. Vertical Differentiation With Consumers Misperceptions And Information Disparities By Alberto Cavaliere; Giovanni Crea
  4. Price Determinants of Bred Cows in Oklahoma Auctions By Mitchell, James; Peel, Derrell S.
  6. Problem with the Consumer's Optimal By Cezar Toader; Cristian Anghel; Cristian Vele
  7. Market fragmentation in Video-on-Demand Services in the EU28 By Georgios Alaveras; Estrella Gomez Herrera; Bertin Martens

  1. By: Zaffou, Madiha; Campbell, Benjamin
    Abstract: Christmas trees sales are considerable throughout the U.S. Understanding the drivers of purchase for Christmas trees, especially the impact of retail outlet and local label, is critical for producers and policy makers within states with tree production. Utilizing data from a choice experiment Connecticut residents in combination with latent class modeling we find that Christmas tree height is important to all latent classes but tree species had less of an impact. Furthermore, we find that a grown in CT label does not influence all consumers, though a majority of our sample had a preferential view and would pay a premium for a CT trees. With respect to retail location, we find that nursery/greenhouse and choose and cut retail outlets are preferred by a majority of consumers, but not by all consumers. Recommendations for the varying retail outlets are provided.
    Keywords: consumer behavior, choice experiment, willingness to pay, Agribusiness, Marketing,
    Date: 2016
  2. By: Mohammed H. Alemu (Department of Food and Resource Economics, University of Copenhagen); Søren Bøye Olsen (Department of Food and Resource Economics, University of Copenhagen); Suzanne E. Vedel (Department of Food and Resource Economics, University of Copenhagen); John Kinyuru (Department of Food Science and Technology, Jomo Kenyatta University of Agriculture and Technology, Kenya); Kennedy O. Pambo (Department of Agricultural and Resource Economics, Jomo Kenyatta University of Agriculture and Technology, Kenya)
    Abstract: In this study, we present one of the first thorough assessments of potential consumer demand for an insect based food product. We assess the demand in terms of Kenyan consumer preferences and willingness to pay for buns containing varying amounts of cricket flour. The novel feature of the study is that it uses an incentivized discrete choice experiment method integrated with sensory experiments intended to reduce any hypothetical bias and to allow participants to acquire experience in terms of tasting the different buns before they make their choices in the choice tasks. We find significant and positive preferences for the buns which contain cricket flour. Interestingly, the bun products with medium amounts of cricket flour are preferred to no or high amount of cricket flour. Finally, we show in a simulated market that the cricket flour based buns are likely to obtain a greater market shares than that of standard buns today.
    Keywords: cricket flour, insect, incentivized discrete choice experiment, taste, willingness to pay
    JEL: C13 C25 C93 D12 Q01 Q11 Q13 Q18
    Date: 2016–05
  3. By: Alberto Cavaliere (Department of Economics and Management, University of Pavia); Giovanni Crea (Department of Economics and Management, University of Pavia)
    Abstract: We consider vertical differentiation with quality uncertainty and information disparities, in a duopoly where firms supply a product with credence attributes. Consumers choice is affected by misperceptions, but equilibrium prices and qualities depend also on the behavior and the share of informed consumers. With optimistic misperceptions uninformed consumers are cheated in equilibrium as we observe less price competition and minimum differentiation. Alternatively some product differentiation is provided when informed consumers buy high quality goods and the incentive to increase quality is positively affected by optimistic misperceptions. With more informed consumers we find more price competition but less incentive to product differentiation. In most cases the share of informed consumers asymmetrically affects equilibrium prices, to the detriment of the high quality firm. Pessimistic misperceptions prevent more product differentiation and adverse selection arises, but it can be eliminated if the share of informed consumers is high enough. However with pessimistic consumers, information disparities can also lead to inelastic demands and market segmentation, such that externalities
    Keywords: Asymmetric information, Brand premium, Quality uncertainty
    JEL: L15 L13 D82
    Date: 2016–04
  4. By: Mitchell, James; Peel, Derrell S.
    Abstract: Bred cows are an input into beef production. Often producers are directly marketing bred cows as beef replacement animals. Alternatively, some producers are capitalizing on alternative marketing opportunities and are selling cull cows as bred. However, in auctions across the state of Oklahoma, quality and value variation in the bred cows is apparent. Product differentiation and price variability is frequently modeled using the hedonic approach. Hedonic models have previously been applied to various classes of cattle including cull cows and cow-calf pairs. However, no previous research has determined the value of bred cow characteristics. The objective of this paper is to determine the market value of various bred cow traits, including age, weight, months bred, cow quality, and hide color. The model accounts for seasonal and cyclical influences on bred cow value. Fifteen years of USDA AMS data for seven Oklahoma auctions is used to estimate the bred cow hedonic model. We expect significant premiums for young, productive, black-hided, late gestation cows. Results will help producers improve replacement cow procurement and cow marketing strategies. Producers will be able to identify traits buyers find desirable allowing them to market a more valuable product.
    Keywords: Bred cows, hedonic, Livestock Production/Industries, Marketing,
    Date: 2016
  5. By: Carpenter, Ashley; Dharmasena, Senarath
    Abstract: In this project, we will work with a small-scale horse farm to develop a social media campaign to sell twenty horses of various riding disciplines, skills, and breeds to establish whether social media marketing is a viable option for hobby farm owners to market their goods and services. There is a significant need for the development of small scale agri-ventures’ social media packages. While many operations have some sort of website, there are little to no resources available by extension services that help hobby farm owners market and advertise their animals or services. In this project, I will work with a small-scale horse farm to develop a social media campaign to sell twenty horses of various riding disciplines, skills, and breeds to establish whether social media marketing is a viable option for hobby farm owners to market their goods and services.
    Keywords: Small sale horse farms, social media marketing, Agribusiness, M2, M3,
    Date: 2016–02
  6. By: Cezar Toader; Cristian Anghel; Cristian Vele (Department of Economics and Physics, Technical University of Cluj Napoca)
    Abstract: The paper presents optimum consumer issue, analyzed in two ways, when the consumer maximizes the usefulness and minimizes its costs that make them subject to the obtainment of a fixed utilities. The problem of optimal consumer is still very important in making the decision the consumer. Customer satisfaction was analyzed by a utility function.
    Keywords: customer, optimum utility, costs, decision
    JEL: C80 L11 M31
    Date: 2014–06
  7. By: Georgios Alaveras (European Commission – JRC - IPTS); Estrella Gomez Herrera (European Commission – JRC - IPTS); Bertin Martens (European Commission – JRC - IPTS)
    Abstract: The main objective of the present study is to measure the extent of market segmentation for video-on-demand (VoD) services in the EU. We examine access to VoD catalogues in other countries and compare the content of film catalogue available across countries. Using various sources of data on VoD services we find that cross-border access to VoD services in the EU28 is extremely limited at 1.9% of available VoD services in the EU. Cross-border availability of film titles reaches 16.8%. Netflix performs better with 31% cross-border availability. Cross-border availability in VoD catalogues remains far below the 40% availability observed in digital film downloads, 80% in digital music downloads and 93% in e-books catalogues. Even within EU Member States, the VoD market is very fragmented with catalogue overlaps between local VoD providers in the order of 30-50% only. Consumers incur high switching costs to access a wider variety of products in this segmented market.
    Keywords: video on demand, geographical market fragmentation, copyright, digital media, language barriers, online film
    JEL: F15
    Date: 2015–12
  8. By: Cenk Gokce ADAS (Istanbul University, Faculty of Economics)
    Abstract: It is believed that export firms are more productive than non-export firms. The reasons for that exporting firms have to endure additional cost because of transport costs, marketing research, advertising, local regulations etc. Export firms are also inclined to pay higher wages than non-export firms, because they use a higher skilled and more productive labours. Hence, export firms have to be more productive due to these additional costs. The aim of this study is to explain whether the productivity advantage of export firms does lead to a profitability advantage of exporters compared to non-export firms. For this reason, this paper attempts to summarise previous empirical studies on the firm level data considering the relationship between exporting firms, productivity, and profitability.
    Keywords: Productivity; Profitability; Exporting Firms; Manufacturing Sectors; Firm Level Data.
    JEL: D22 F14 L60

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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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.