nep-mkt New Economics Papers
on Marketing
Issue of 2016‒06‒04
29 papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. What’s in a Price? The Impact of Starting Point Bias in WTP for Information in Taiwanese Wet Markets By Yang, Shang-Ho; Souza Monteiro, Diogo
  2. Drivers of Demand for Specialty Crops: The Example of Arizona-Grown Medjool Dates By Grebitus, Carola; Peschel, Anne; Hughner, Renee Shaw
  3. Retail Market Power in a Shopping Basket Model of Supermarket Competition By Richards, Timothy; Hamilton, Stephen
  4. Investigating the US Consumer Response to the Chinese Acquisition of a US Firm By Zhang, Yu Yvette; Palma, Marco A.; Jin, Shaosheng; Yuan, Xiaotong
  5. Price Discovery and Price Transparency in the U.S. Cheese Industry By Bolotova, Yuliya V.
  6. The Impact of Impulsive Behavior on Fresh Produce Purchase: Do the Shopping Companions Matter? By Chen, Xuqi; Gao, Zhifeng
  7. Which Smart Electricity Service Contracts Will Consumers Accept? The demand for compensation in a platform market By Laura-Lucia Richter; Michael G. Pollitt
  8. Do Firms Price and Advertise to Maximize Profits? Evidence from U.S. Food Industries By He, Xi; Lopez, Rigoberto
  9. Personalized Pricing and Price Fairness By Richards, Timothy; Liaukonyte, Jura; Nadia, Streletskya
  10. Are WTP Estimates for Fruit Quality Similar between Growers and Consumers? Results of a Choice Experiment on Four Rosaceous Fruit Crops By Gallardo, R. Karina; Yue, Chengyan; McCracken, Vicki; Luby, James; McFerson, James
  11. The economic impact of removing geo-blocking restrictions in the EU Digital Single Market By Nestor Duch-Brown; Bertin Martens
  12. Retail Alcohol Availability and Product Diversity By Ho, Shuay-Tsyr; Qu, Mingyang; Rickard, Bradley; Costanigro, Marco; McLaughlin, Edward
  13. Are Consumers’ Preferences for Food Values in the U.S. and Norway Similar? A Best-Worst Scaling Approach By Bazzani, Claudia; Gustavsen, Geir W.; Nayga, Rodolfo M. Jr.; Rickertsen, Kyrre
  14. Impact of Sensory Quality and Labels on Consumer Preference of Fresh Strawberries By He, Chenyi; Gao, Zhifeng; House, Lisa; Guan, Zhengfei
  15. Potential Demand for Local Fresh Produce by Mobile Markets By Zepeda, Lydia; Reznickova, Anna
  16. Product Bundling as a Behavioral Nudge: Investigating Consumer Fruit and Vegetable Selection using Dual-Self Theory By Carroll, Kathryn A.; Samek, Anya Savikhin; Zepeda, Lydia
  17. Profiling Private-Label Avoiders By Larson, Ronald B.
  18. Store Choice and Consumer Behavior in Food Deserts: An Empirical Application of the Distance Metric Method By Chenarides, Lauren; Jaenicke, Edward, C.
  19. Demand for Varied Fruit and Vegetable Colors By Steele, Marie; Weatherspoon, Dave
  21. Governance and Performance in the U.S. Agri-Food Industry: A Comparative Study of Firms and Cooperatives By Grashuis, Jasper; Cook, Michael
  22. The Impact of Nutrient Demand and Marketing Instruments on Intra-Category Substitution By Xie, Yi
  23. A study on consumer characteristics of processed rice and meat products on food-related lifestyles using beta regression model By Jin Hyeung, Kim; Sung Ho, Park; Young Chan, Choe
  24. A test of the Behavioral versus the Rational model of Persuasion in Financial Advertising By Riccardo Ferretti; Francesca Pancotto; Enrico Rubaltelli
  25. Making the Most of Cheap Talk in an Online Survey By Penn, Jerrod; Hu, Wuyang
  26. Evolution of the Food-Away-From-Home Industry: Recent and Emerging Trends By McLaughlin, Patrick; Dicken, Christopher
  27. Eco-labelling Offers a Sustainable Future for Indonesian Coffee By Nuva; Yusif; Nia Kurniawati H.; Hanna
  28. The hidden side of dynamic pricing in airline markets By Alderighi, Marco; Gaggero, Alberto A; Piga, Claudio A
  29. The Digital Market for Local Services: A one-night stand for workers? An example from the on-demand economy By De Groen, Willem Pieter; Maselli, Ilaria; Fabo, Brian

  1. By: Yang, Shang-Ho; Souza Monteiro, Diogo
    Abstract: Traditional markets in Asian countries still account for the majority of fresh meat, fish and vegetable purchases. One of the reasons for their popularity is the relational trust between vendors and buyers. This trust may justify the limited availability of information on origin or production methods and other attributes of foods sold in these markets. However, a number of recent food safety outbreaks and food fraud cases raised consumer and government concerns on over the level information in these markets and ignited a reflection of possible action. This study aims to determine the consumer willingness to pay (WTP) for fresh meat traceability and free growth hormone information traditional markets in Taiwan. To estimate the values of information the payment card method was employed and to account for the starting point bias, the sample was divided into different treatments each with a different price of meat. A total of 2,381 completed survey were collected in mid-July, 2015. An interval regression model is utilized to examine how much consumers would be willing to pay for addition product information. The results suggest that WTP of information not consistent among groups with different starting point scenarios. There was a significant difference between respondents that were not given any indication of the price per quantity of meat and those that were prompted with a market price. Interestingly, we found that consumers treat the information of growth hormone-free examination and traceability differently.
    Keywords: starting-point bias, WTP, traceability, growth hormone-free, wet markets, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing, Research Methods/ Statistical Methods,
    Date: 2016–07
  2. By: Grebitus, Carola; Peschel, Anne; Hughner, Renee Shaw
    Abstract: Recently, gross production of Medjool dates has approximately doubled in Arizona, with the growing region increasing to over 3,000 harvested acres in 2014. As the supply of Medjool dates increases, consumer demand needs to increase accordingly. This research aims to investigate consumer preferences for specialty crops such as Medjool dates. This paper analyzes the impact of Arizona Grown and California Grown labeling on consumer preferences for Medjool dates applying choice experiments. Furthermore, the influence of pesticide-free labeling and GMO-free labeling on willingness to pay is tested both individually and as interaction effect. Results show that consumers prefer dates grown in California and Arizona over dates not labeled for region of origin. Between California and Arizona, those dates originating in California are preferred. Also, pesticide free and GM-free dates are preferred with pesticide free having a larger impact on choices. Overall, results can be used by stakeholders to create target oriented marketing activities.
    Keywords: Choice experiments, Medjool dates, Preferences, Arizona grown, Pesticide free, GMO free, Agribusiness, Marketing, M31, Q13,
  3. By: Richards, Timothy; Hamilton, Stephen
    Abstract: Supermarket consumers typically purchase more than one item at a time. Retail prices, in turn, are likely to depend on demand relationships between multiple categories of goods in consumers' shopping baskets. In this paper, we develop a model of retail price competition that explicitly models the effect of complementary demand relationships between products that appear in consumer shopping baskets. We derive inferences for retail market power when shopping baskets contain products from complementary categories and compare outcomes with the predictions derived from conventional models that assume consumers make discrete choices among independent product categories. Our findings reveal that cross-category product complementarity in consumer shopping baskets facilitates substantially greater retail market power relative to the benchmark case of discrete choice over independent goods.
    Keywords: complementarity, retailing, pricing, supermarkets, oligopolies., Industrial Organization,
    Date: 2016
  4. By: Zhang, Yu Yvette; Palma, Marco A.; Jin, Shaosheng; Yuan, Xiaotong
    Abstract: In 2013, Smithfield Foods Inc., the world’s largest pork processor, was acquired by Shuanghui International Holdings Ltd, China’s largest pork producer. The $4.7 billion acquisition marks the largest Chinese takeover of a U.S. company in history. After the acquisition, Virginia-based Smithfield became a subsidiary of Shuanghui International Holdings. In this study, we investigated how US consumers responded to the Chinese acquisition of Smithfield. We found that US consumers are willing to pay significantly more for the US brands compared to the Chinese brands. The US consumers’ willingness to pay for Smithfield products decreased significantly after they learned about the Smithfield-Shuanghui acquisition, especially for risk averse consumers and those with higher education level. Furthermore, contrasting to the results in the Chinese market, we did not find a negative spillover effect of this acquisition on other US products in the US market.
    Keywords: Merging and Acquisition, Multinational business, Chinese acquisition of US company, experimental auctions, meat industry, consumer willingness to pay, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, International Relations/Trade, Marketing, C91, D44, D12, F23, Q13,
    Date: 2016–05–25
  5. By: Bolotova, Yuliya V.
    Abstract: The private Exchange spot cheese market has historically performed a primary price-discovery function in the U.S. cheese industry. Since 1997 the spot cheese trade takes place at the Chicago Mercantile Exchange (CME). The Exchange spot cheese prices have been used as reference prices in cheese contracts used to transact the vast majority of cheese produced in the country. Furthermore, the Exchange spot cheese prices have been influencing prices paid for milk used in cheese manufacturing within the system of Federal Milk Marketing Orders (FMMOs). The objective of this research is to analyze the conduct and performance of the Exchange spot cheese market during three FMMOs milk pricing regimes (1983-2015). First, the patterns of trading activities (actual sales, unfilled bids and uncovered offers) and the behavior of spot cheddar cheese prices are analyzed. Second, to evaluate the role of the Exchange spot cheese market in the entire U.S. cheese industry, the performance of the natural cheddar cheese industry segment is evaluated by analyzing changes in milk price, wholesale cheddar cheese price, retail price of natural cheddar cheese and associated margins over time.
    Keywords: cheese pricing, Chicago Mercantile Exchange, spot cheese market, milk pricing, public pricing system, thin market., Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, Industrial Organization, Marketing, L1, L2, L5, L6, Q11, Q13, Q18.,
    Date: 2016–05
  6. By: Chen, Xuqi; Gao, Zhifeng
    Abstract: Impulsive purchase is defined as a consumer’s unplanned buying behavior, which is of significance in marketing and consumer behavior. They usually occur when consumers experience a sudden urge to purchase something immediately without additional substantive evaluation, and execute based upon that urge. This study exams the influence of shopping companions upon consumers, with a particular focus on impulsive behavior. Previous literature has indicated a significant correlation between emotion and consumer final purchase decisions. However, few researchers before conducted the study studied the influence of various companions and their influence on consumers impulsive purchasing. Around 2,400 participants joined in this survey, gave their responses of most frequent grocery shopping companions and usual responses to the suggestions from these companions. In addition, participants’ impulsiveness, emotion, and emotional level were tested and corresponding index was created. Results indicate that dad/mom and wife/husband were the two most frequent and influential grocery shopping companions. Participants were very likely to accept the impulsive suggestions from these two groups. As for the regression, multiple factors were found significant, while the results diverse when applying to different shopping companion groups.
    Keywords: Impulsive Purchasing, Shopping Companions, Emotion, Grocery Shopping, Impulsiveness, Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing,
    Date: 2016
  7. By: Laura-Lucia Richter; Michael G. Pollitt
    Abstract: This paper considers the heterogeneity of household consumer preferences for electricity service contracts in a smart grid context. The analysis is based on original data from a discrete choice experiment on smart electricity service contracts that was designed and conducted in collaboration with Accent and 1,892 UK electricity consumers in 2015. The results suggest that while customers are willing to pay for technical support services, they are likely to demand significant compensation to share their usage and personally identifying data and to participate in automated demand response programs. Based on these findings potential platform pricing strategies that could incentivise consumers to participate in a smart electricity platform market are discussed. By combining appropriate participation payments with sharing of bill savings, service providers could attract the number of customers required to provide the optimal level of demand response. We also examine the significant heterogeneity among customers to suggest how, by targeting customers with specific characteristics, smart electricity service providers could significantly reduce their customer acquisition costs.
    Keywords: Discrete Choice Experiment, smart energy, Willingness-to-Accept, platform markets
    JEL: C18 C38 D12 L94 Q42 Q55
    Date: 2016–05–16
  8. By: He, Xi; Lopez, Rigoberto
    Abstract: Based on a model that incorporates brand entry deterrence through advertising and pricing strategies, this paper investigates whether firms’ advertising and pricing policies deviate from their short-run profit maximization strategies and how advertising and pricing entry deterrence strategies vary with market conditions. We estimate the advertising and pricing response of incumbents to entrants in four food industries: beer, carbonated soft drinks, ready-to-eat cereal and yogurt, and find that incumbents deviate significantly from profit maximization advertising and pricing policies. There is a U-shaped relationship between the potential market share of an entrant and incumbents’ pricing but an inverse U-shape with respect to advertising level. This means that incumbents are more likely to price higher and advertise less to deter entry when potential entrants are more competitive in terms of potential market share. Empirically, we show this to be the case in the four food industries studied.
    Keywords: Incumbents, entrants, food industries, advertising and pricing, Industrial Organization, Marketing, L11, L21, M37,
    Date: 2016
  9. By: Richards, Timothy; Liaukonyte, Jura; Nadia, Streletskya
    Abstract: Mobile web technology enables discriminatory, or personalized, pricing for many more consumer good categories than has traditionally been the case. Setting prices according to individual valuations, however, generates adverse consumer reaction un- less consumers are invited to participate in the price-formation process. Consumer perceptions of price fairness are key to the sustainability of any discriminatory pric- ing regime. Perceptions of price fairness, in turn, are hypothesized to be shaped by "self-interested inequity aversion" in which prices tend to be regarded as unfair, and purchase probabilities fall, if others are perceived to pay a lower price, while prices tend to be regarded as more fair, and consumers more likely to purchase, if inequity is in the buyers favor. Our experimental data also shows that the implications of inequity aversion for sellers can be at least partially reversed if consumers are allowed to par- ticipate in the price-formation process by negotiating the price they pay. The primary implication of our ndings is that, in order to be viable, any system of discriminatory pricing for consumer goods should invite consumers to have a stake in the price they pay. Such participatory pricing may provide one way out of the current trap of Hi-Lo, or promotional, pricing that neither retailers nor manufacturers regard as sustainable.
    Keywords: experimental economics, fairness, inequity aversion, price discrimination, retail pricing, Industrial Organization,
    Date: 2016
  10. By: Gallardo, R. Karina; Yue, Chengyan; McCracken, Vicki; Luby, James; McFerson, James
    Abstract: WTP research is typically applied to consumer groups. Scant applied economics research has been done to elicit producers’ preferences and values for fruit quality, despite the important role producers play in the supply chain, as they take the financial risk to invest in a promising cultivar, making it accessible to the consumer in the marketplace through a sometimes complex supply chain. Our results show evidence that fresh market fruit producers are generally aligned with consumer preferences, as flavor and textural components were consistently given the highest WTP value among other fruit quality characteristics. However, market intermediaries (e.g., shippers, packers, marketers) do not exhibit the same preferences across all crops. The specific economic valuation placed by growers, market intermediaries, and consumers on individual attributes can now provide breeding programs more specific information to evaluate the fruit quality trait, and the targeted levels for that trait, within their programs.
    Keywords: WTP, consumers, producers, intermediaries, quality, fruit, Agribusiness, Consumer/Household Economics, Demand and Price Analysis, Q13,
    Date: 2016
  11. By: Nestor Duch-Brown (European Commission - JRC - IPTS); Bertin Martens (European Commission – JRC - IPTS)
    Abstract: This study investigates the welfare impact of lifting geo-blocking restrictions to cross-border e-commerce in the EU, using a dataset for consumer electronics products in ten European countries for the period 2012-2105. We simulated two counterfactual scenarios where geo-blocking is either fully or only indirectly removed. This would allow consumers to arbitrage, taking advantage of price differences, and to expand product variety through imports. We computed the welfare effects, as changes in both consumer and producer surpluses. Finally, we extrapolated these partial results to all online sales in the EU28. The results indicate that both consumers and producers would gain from removing geo-blocking restrictions. Smaller countries would benefit comparatively more than larger countries.
    Keywords: digital single market, geo-blocking, economic impact, consumer welfare, cross-border e-commerce, trade restrictions, consumer electronics
    JEL: D12
    Date: 2016–05
  12. By: Ho, Shuay-Tsyr; Qu, Mingyang; Rickard, Bradley; Costanigro, Marco; McLaughlin, Edward
    Abstract: The repeal of the Prohibition Act in 1933 introduced many state-specific regulations in alcohol markets. As one example of this, several states currently have laws that restrict specific alcoholic beverages in grocery stores, and some states have recently considered lifting these restrictions. Some opponents of such legislative changes claim that allowing alcohol to be more widely distributed would put smaller liquor stores out of business and eventually lead to a narrower set of product choices available to consumers. Here we use the Nielsen Homescan dataset that describes alcoholic beverage purchasing patterns for approximately 70,000 households between 2004 and 2012 to examine this issue empirically. Our results show that, even when controlling for preferences for variety, consumers in states that allow beer and wine sales in grocery stores have greater diversity in their purchases of beer and wine. Overall, the findings suggest that expanding the retail availability of beer and wine may actually increase the diversity of alcoholic beverage products purchased by consumers in those states.
    Keywords: Entropy Index, Grocery stores, Product diversity, Regulation, Wine, Agricultural and Food Policy, Consumer/Household Economics, D12, K23, Q18,
    Date: 2016–05–25
  13. By: Bazzani, Claudia; Gustavsen, Geir W.; Nayga, Rodolfo M. Jr.; Rickertsen, Kyrre
    Abstract: Food values in Europe and the US may influence each other and be influenced by similar external factors. While a number of studies have focused on comparing consumers’ preferences for specific food attributes in the US and different European countries, this is the first study that compares food values. We compare food values in the US and Norway by using the Best-Worst scaling approach. Identical surveys involving about 1000 respondents were conducted in each country. The surveys included a series of choice sets where respondents were asked to indicate which food value they considered as the most and the least important. The food values included in the choice sets were naturalness, taste, price, safety, convenience, nutrition, novelty, origin, fairness, appearance, environmental impact, and animal welfare. The results show many similarities in preferences. Safety and taste are ranked as the most important values and novelty as the least important value in both countries. However, US respondents considered price as more important than did the Norwegian respondents.
    Keywords: Food Values, Best Worst Scaling, Consumers’ Preferences, Discrete Choice Models, U.S., Norway, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing,
    Date: 2016–05–25
  14. By: He, Chenyi; Gao, Zhifeng; House, Lisa; Guan, Zhengfei
    Abstract: Growth in imports of strawberries, particularly from Mexico, threaten the Florida strawberry industry. To better compete with strawberries from Mexico, the Florida strawberry industry has focused on product differentiation with an emphasis on quality. In this study, we conducted one sensory test combined with experimental auctions to examine the impact of fruit quality and labeling strategies on consumer purchase. Two strawberry varieties, Sweet Sensation and Festival are used in the experiment. Ten samples with different labels under different strawberry varieties were randomly presented to participants. In total 103 panelists participated in sensory test and experimental auction. Results show that without labeling, consumers cannot distinguish different varieties of strawberry. In most cases, labeling varieties does not directly affect consumer preference. This indicates that actions need to be taken to improve consumers’ awareness and recognition of variety labels such as Sweet Sensation.
    Keywords: Sensory Quality, Labels, Fresh Strawberries, Experiment Auction, Agribusiness, Consumer/Household Economics, Institutional and Behavioral Economics, Marketing,
    Date: 2016–01
  15. By: Zepeda, Lydia; Reznickova, Anna
    Abstract: We conducted 59 interviews at six sites across the US to assess the impact of mobile markets that had received Farmers Market Promotion Program (FMPP) grants. We found that while mobile markets can be important outlets for producers and improve access to fresh produce for consumers, they are often costly to operate and dwarfed by the distribution of free produce by mobile food pantries operated by food banks. Several of the sites provide innovative partnerships that enhanced the sustainability of the mobile markets and complemented mobile pantries. The interviews highlight the need for coordinated efforts by non-profits and policy makers in addressing markets for producers, especially beginning or small producers, and access to healthy food by the food insecure.
    Keywords: mobile markets, local food, food access, Food Security and Poverty,
    Date: 2016–05–25
  16. By: Carroll, Kathryn A.; Samek, Anya Savikhin; Zepeda, Lydia
    Abstract: The Center for Disease Control (CDC) estimates that at least 68% of U.S. adults aged 20 and older are overweight with BMIs of 25+. A major component of this problem is the decision to habitually consume high quantities of low-nutrient, high-calorie foods (NIH, 2012). This study uses an artefactual field experiment on food choice, conducted in a large Midwestern U.S. city during fall 2015, to explore whether product bundles (consisting of primarily fruit & vegetable (F&V) items) can serve as a behavioral intervention to increase F&V selection. Also of interest was determining whether shopping under cognitive load influenced both item and bundle selection using a dual-self framework, and whether bundles need offer a price discount. Study participants shopped a grocery display under one of six different treatments, with differences examined among the proportion of items selected from three categories: Fruit and Vegetables, Junk Food/Snacks, and Protein/Dairy/Grains. The proportions of items selected by category were also analyzed using a fractional multinomial regression model. Results uncover that product bundles need not offer a price discount in order to effectively increase F&V selection. In fact, discounted bundles were counterproductive at increasing F&Vs when shoppers were under high cognitive load. Product bundles may be preferred by consumers as a means through which to lessen the cognitive strain of the shopping process, and could serve as a potential behavioral intervention to increase retail F&V sales.
    Keywords: food choice, fruit and vegetable selection, product bundling, cognitive load, artefactual field experiment, dual-self theory, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Institutional and Behavioral Economics, Marketing, C91, D12, I12, Q13,
    Date: 2016–05
  17. By: Larson, Ronald B.
    Abstract: Many food retailers offer private-label products because of the strategic benefits they provide. Growing private-label sales could be advantageous for both retailers and private-label manufacturers. Conventional wisdom leads us to believe it would be ineffective to use traditional market segmentation and targeting to grow private-label sales because socio-demographics are not strongly linked with private-label attitudes or purchases. However, many studies found that perceived risks are associated with private-label attitudes and purchases. This study uses a survey to identify individuals who perceive there to be significant risks with private-label purchases or use. The profile of these private-label avoiders could provide retailers and private-label manufacturers with segmentation and targeting information and help them grow their businesses.
    Keywords: Private Label, Store Brand, Perceived Risk, Retail Marketing, Consumer Survey, Agribusiness, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Industrial Organization, Marketing, L25, M30,
    Date: 2016
  18. By: Chenarides, Lauren; Jaenicke, Edward, C.
    Abstract: Shopping and store-choice decisions are intertwined with firms’ decisions to enter or exit a market, as well as with heterogeneous consumer demographics. The importance of food access becomes apparent in determining where households choose to purchase food, as consumers residing in underserved areas are faced with shopping at non-traditional stores that may result in negative welfare outcomes. Research regarding consumer purchasing behavior has traditionally looked at store choice as a nested discrete choice decision; however, we propose an alternative approach that models consumer store choice preferences for store attribute bundles, including product assortment, store services, and price via the Distance Metric (DM) method of Pinkse, Slade, and Brett (2002). Methodologically, the use of the DM method offers a straightforward way to measure substitution patterns between stores with similar attributes. In addition, the importance of product assortment, store services, and price can be described to create a more flexible model of store selection within different markets across the U.S.
    Keywords: store choice, scanner data, food access, food deserts, distance metric method, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Food Security and Poverty,
    Date: 2016
  19. By: Steele, Marie; Weatherspoon, Dave
    Abstract: Fruits and vegetables are essential for a healthy diet. An ideal diet not only includes a variety of fruits and vegetables but also a variety of colors of fruits and vegetables because the different colors provide unique vitamins, minerals and protective plant compounds associated with different health benefits. Previous research that explores fruit and vegetable demand either focus on individual fruits and vegetables or aggregate all fruits and aggregate all vegetables. When analysis is conducted in either manner the importance of the color variety is ignored. The objective of this study was to explore the demand for fruit and vegetable colors of low income consumers in a primarily Hispanic neighborhood. This study used the Quadratic Almost Ideal Demand System approach and found all color own price elasticities were negative and all color expenditure elasticities were positive, as expected. The consumers were most price responsive to the yellow/orange fruits and to the white vegetables. Results show that if these consumers had more fruit and vegetable expenditure it would be spent mostly on the red/blue/purple colored fruits and vegetables and least on the white colored. The results also show that consumers view the different colors as substitutes, when ideally they should be viewed as complements. Policies should emphasize and promote variety of colors in attempt to change this view. Supermarkets could also help in the effort by organizing the produce departments by color.
    Keywords: fruit and vegetable colors, quaids, low income, Hispanic, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Health Economics and Policy,
    Date: 2016
  20. By: Tran, Van; Yiannaka, Amalia; Giannakas, Konstantinos
    Abstract: A survey instrument was developed to examine the factors that shape consumers’ risks and benefits perceptions and the effects of the provision of balanced information on consumers’ willingness-to-pay (WTP) for nano-based packaging that could improve food safety. We also examine and contrast the effect of loss and gain information framings and investigate whether the framing increased acceptance and WTP by emphasizing the enhanced attributes of nanotechnology or whether it produced, instead, anxiety that spilled over to nanotechnology. The empirical findings show that, even though consumers are willing to pay a premium for nanotechnology-based packaging that improves food safety, they discount such packaging when informed that nanotechnology is used to produce it. Preference for organic production practices, concern about foodborne bacteria, involvement with the issues outlined in the survey, work status, income, race, age, number of children, trust in the food industry and political affiliation all had a statistically significant impact on WTP. In addition, the study provides evidence of positive associations between consumers’ risk tolerance of food nanotechnology and the expected probability of buying a nanofood product as well as WTP for food nanotechnology innovations. Comparisons of consumers’ WTP for the use of nanotechnology in food packaging across information treatments reveal a statistically significant negative effect of the provision of additional information, albeit a balanced one, on consumers’ WTP. In addition, the provision of gain and loss framed information reinforces the effects of balanced information on consumers’ WTP for nano-food packaging that reduces food safety risks. However, the effect of information framings on consumers’ WTP when balanced information is also provided is not statistically significant.
    Keywords: Food nanotechnology, consumer perceptions, willingness-to-pay, information framings, Food Consumption/Nutrition/Food Safety, Marketing, Research and Development/Tech Change/Emerging Technologies,
    Date: 2016
  21. By: Grashuis, Jasper; Cook, Michael
    Abstract: This paper presents a unique descriptive and empirical study of governance and performance in the U.S. agri-food industry with specific emphasis on the boards of directors of firms and cooperatives. Per the summary statistics, the average firm has more assets, more sales, and more profits, yet efficiency and profitability ratios indicate the average cooperative is superior. Using seven board and management characteristics, a three-stage least squares model is specified for two samples of 128 firms and 456 cooperatives in order to address the hypothesized endogenous nature of the governance-performance relationship. For the cooperative sample, the impact of board size on performance is estimated to be negative, while female directorship, director independence, and director ownership have a positive and significant causal relationship to various proxies of performance. Overall, in relation to financial performance, governance as proxied by board and management characteristics is concluded to be more impactful for the cooperative sample, which implies a significant difference between corporate and cooperative governance.
    Keywords: Governance, Agricultural Cooperative, Three Stage Least Squares, Comparative Study, Agribusiness, Industrial Organization, Q13, Q14, Q15,
    Date: 2016
  22. By: Xie, Yi
    Keywords: Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2016–05
  23. By: Jin Hyeung, Kim; Sung Ho, Park; Young Chan, Choe
    Abstract: This study compares consumer characteristics of processed rice and meat products on food-related lifestyles. As the social environment changes and household income improves, the trend of diet change and single-person households is diversifying the food consumption patterns of consumers. The food industry and production technology has developed and the consumption of processed or convenience food is increasing. The existing studies are mostly related to the riskiness and disease-causing factors of processed food. In the Asian markets such as Korea and Japan and the North American and European markets, the processed rice industry is rapidly developing. In this study, we analyze the purchasing characteristics of processed rice consumption as compared to processed meat products. We used consumer panel purchase data of 703 housewives in South Korea from the Rural Development Administration. The data includes household purchasing scanner panel data for the year 2014 and questionnaires related to food-related lifestyle. We used confirmatory factor analysis and the beta regression model to identify processed food consumer characteristics. The purchase rate of processed food over the total amount has a range from ‘0’ to ‘1’. To correct for heteroscedasticity and statistical errors in the dependent variable, we use the beta regression model for the rate from ‘0’ to ‘1’. . The social democratic variables such as age and number of family members from the beta regression have a negative relationship and the eating out purchase amount has a positive relationship with both processed rice and meat products (p <0.05). The food-related lifestyles variables of the price criteria for quality and the cost performance for ways of shopping and eating out in a consumption situation increased the rate of purchasing processed meat. However, health quality decreased the consumption rate of processed meat (p <0.05). In the case of processed rice, the propensity to seek a cooking method increased the rate of purchasing processed rice (p <0.05), and the price criteria for ways to shop and propensity to cook with a plan decreased the rate of purchasing amount (p <0.05). According to the results, consumers who purchase a high proportion of processed meat usually consider more price information and consume relatively less healthy products. However, consumers of processed rice tend to purchasing for a new cooking method and consider less a price criteria and cooking plan for consumption.
    Keywords: processed rice products, processed meat products, food-related-lifestyle, beta regression model, Agribusiness, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2016
  24. By: Riccardo Ferretti; Francesca Pancotto; Enrico Rubaltelli
    Abstract: We present a test of the behavioral versus the rational model of advertising in the financial market. We analyze the Granger-causality relationship existing between Comit stock market index and advertising of financial products and services from the most important daily published financial newspaper in Italy. We run the test for both the risky and non-risky advertising, finding that the behavioral model of advertising is supported when risky financial products and services are considered, while the rational model is true for the non-risky. We ascribe this result to the dual process of reasoning: When investors evaluate the decision to buy risky nancial products and services, they activate the automatic, rapid decision making process. The behavioral model of advertising copes with it and provides an advertising strategy that responds to market evolutions. When non-risky financial products and services are considered, a di erent mental process, requiring slow and sequential reasoning, operates, compatibly with a rational decision making process.
    Keywords: advertising, stock market index, behavioral model, dual process, Granger Causality
    JEL: G02 G20 M37 O51
    Date: 2016–05
  25. By: Penn, Jerrod; Hu, Wuyang
    Keywords: cheap talk, Environmental Economics and Policy,
    Date: 2016
  26. By: McLaughlin, Patrick; Dicken, Christopher
    Keywords: Agribusiness, Industrial Organization,
    Date: 2016–05–24
  27. By: Nuva (Department of Resource and Environmental Economics, Bogor Agricultural University); Yusif (Bogor Agricultural University); Nia Kurniawati H. (Bogor Agricultural University); Hanna (Bogor Agricultural University)
    Keywords: Eco-labelling, Coffee, Indonesia
    Date: 2016–04
  28. By: Alderighi, Marco; Gaggero, Alberto A; Piga, Claudio A
    Abstract: An often disregarded, albeit central, aspect of the airline pricing's problem consists in assigning a fare to all the available seats on an airplane at the beginning of and during the whole booking period. We show how a flight's fare distribution is set in practice and how it changes over time using evidence from a leading European low-cost carrier. Such pricing behavior is consistent with the main predictions from the theoretical model we present. First, fare distributions are increasing across seats because a lower fare for the seat on sale enhances the likelihood of selling the subsequent seats. Second, over time fare distributions move, on average, downward to reflect the perishable nature of a flight's seats. Third, due to the increasing profile of the fare distributions across seats, we find that the price observed by prospective buyers tends to increase as the date of departure nears.
    Keywords: dynamic pricing, option value, seat inventory control, low-cost carriers
    JEL: D22 D90 L11
    Date: 2016–06
  29. By: De Groen, Willem Pieter; Maselli, Ilaria; Fabo, Brian
    Abstract: This case study provides a snapshot of the dynamics in the digital market for locally provided personal services. Based on a case study for a Belgium platform with 14,113 identified workers and 9,459 posted tasks, the findings suggest that the current intermediation is inefficient. Only a limited share of the tasks posted on the platform are being completed, whereas the characteristics of the not-completed tasks are fairly limited. Moreover, just a small share of the workers participating in the platform is actually performing the completed tasks. Their average earnings per hour are in most cases above the minimum wage and even above the median wage in the offline market. At the present time, however, the limited earnings for individual workers prevent this mode of working from becoming an alternative to a conventional job. In addition to the standard determinants of workers’ earnings (e.g. gender, age, occupation, etc.), the characteristics and evaluation mechanism of the platform have a large influence on the distribution of tasks and earnings.
    Date: 2016–04

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