nep-mkt New Economics Papers
on Marketing
Issue of 2016‒07‒23
fourteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  2. Targeted information and limited attention By Andreas Hefti; Shuo Liu
  3. A Methodology for Determining the Impact of the Political Environment on Marketing and Tourism By Neviana Krasteva
  4. The impact of the competitive strategy on the success of wine companies (The Case of Georgia) By Eka Chokheli
  5. Advertising, Innovation and Economic Growth By Pau Roldan; Laurent Cavenaile
  6. Temptation in Markets with no Commitment: Give-aways, Scare-aways and Reversals By Matteo Foschi
  7. Thoughts of Shopping Center Managers about Corporate Social Responsibility By Ömer Bakan
  8. The Product Life Cycle and Sample Representativity Bias in Price Indexes By Daniel Melser; Iqbal A. Syed
  9. Mergers And Acquisitıons In Pharmaceutical Industry As A Growth Strategy: An Investigation Upon Practice By Yasin ÇİLHOROZ; Cuma SONÄžUR; Mehmet GÖZLÜ; Murat KONCA
  10. Looking into the Profile of Music Audiences By Victor Fernandez-Blanco; Maria Jose Perez-Villadoniga; Juan Prieto-Rodriguez
  11. Fashion, fads and the popularity of choices: micro-foundations for non-equilibrium consumer theory By Jean-Francois Mercure
  13. Perceptual Maps: An Empirical Research on Hospitals By Fatih Santas; Ahmet Kar; Gulcan Kahraman; Arzu Kursun
  14. The Passions and the Interests: Unpacking the ‘Sharing Economy’ By Cristiano Codagnone; Federico Biagi; Fabienne Abadie

  1. By: Pınar ÇELİK (Akdeniz University); Murat ÇAYLAK (Akdeniz University)
    Abstract: The more and more people tend to use the Internet and web tools because of the developing technology and Internet. One of the most important of these tools is social media, a new virtual media that users express themselves and connected with other users. This new media results in the new marketing approach that called as social media marketing and based on interactive participation of consumers. Social media content created by the user or firm has impact on the purchasing decisions of consumers. Therefore, the quantity of spoken and what is spoken about product/service in social media becomes important for firms as well as consumers. Since tourism sector offered the intangible services to consumer, in tourism sector it is important to have social media with quality of visual contents for traveler to have a positive impact before their trip. For that reason, the key objectives of the paper are to examine the application of hotel firms in Instagram that photo-based social media tool and to analyze whether is there any difference or not in photo preferences of a chain hotel operating in different regions. The official Instagram accounts and postings of International Chain Hotels Rixos Group between 20-30 April 2016 was examined by using visual content analysis technique. In this context, chi-square test was performed to reveal the relationship between posting numbers, follower number, followed user number, average number of like and average number of comment of hotels operating under Rixos Hotel Chain and operating in Turkey and abroad. There is a statistically significant difference between F&B and hotel services themed photos according to Kruskal-Wallis test that performed to reveal the differences between posted photos’ themes that posted by Rixos Hotels operating in Turkey and abroad.
    Keywords: Hotel Firms, Visual Content Analysis, Social Media, Instagram
    JEL: M00 M10 M19
  2. By: Andreas Hefti; Shuo Liu
    Abstract: We study targeted information in a duopoly model with differentiated products, allowing for consumers with limited attention. The presence of inattentive consumers incentivizes firms to behave as if they were mass-advertisers, despite their ability to direct their mes- sages precisely towards consumers with the strongest preferences. We show that the scope for targeting as an efficient marketing instrument can be severely reduced, for both firms and consumers, if the standard assumption of unbounded attention capacities is dropped. A central insight of our model is that limited attention may explain the recent evidence on increased ad-blocking, which has become a key concern to the entire advertising in- dustry. Our main findings are robust to several variations, including price and salience competition as well as varying quality of the available marketing data.
    Keywords: Targeting, limited attention, advertising avoidance, salience competition
    JEL: D43 L13 M37
    Date: 2016–07
  3. By: Neviana Krasteva (International Business School, Botevgrad)
    Abstract: A method for the quantitative measurement of the political environment is developed, allowing for a reasonably accurate evaluation of the risk factors and their impact on the competitiveness of the companies in view. The quantitative part of the analysis is based on expert evaluations. The model is an adaptation of the foundation laid by Michael Porter – which is a classification of the factors of international competitiveness; for the purposes of the analysis the determinants of national competitiveness are decomposed into separate components-turned-variables (as per Shafael).From the derived results, a reasonably clear picture can be drawn about the true condition of the political factors and their impact. On that basis, conclusions can be drawn about the intensity of impact of each outside factor for the period of analysis. Revealed are those factors and determinants of the political environment which are conducive to business and competitiveness, and those who are not. Comparison between different companies in tourism becomes possible.A case study which is offered is the impact of the recent international events in and around Russia on the Spanish tourism market.
    Keywords: political environment, risk factors
    JEL: M31
  4. By: Eka Chokheli (Ivane Javakhishvili Tbilisi State University)
    Abstract: In the global environment, the success of any company largely depends on how swiftly and fast a company can react to the external challenges. Wine industry is one of the priority branches in Georgia. The competition is very tough in this field and the market is almost totally saturated. Therefore, the wine companies have to do their utmost efforts to establish themselves on the local market and think of further growth. Successful are the companies permanently trying to create competitive advantage and develop relevant competitive strategies. The goal of the study is to estimate the importance of the strategy based on the competitive advantage for the companies, to study the degree of using such competitive strategies by wine companies in Georgia and to develop relevant recommendations. The theoretical study is based on the works in management by the world scientists, while the practical study is based on the qualitative study of the business companies of Georgia. The study used questionnaires and interviews, as well as graphical, grouping and comparison methods.The results of the study will reveal the problems of using competitive strategies at wine companies operating in Georgia and will help them to focus on the strategies based on competitive advantage. The novelty of the study lies in the identification of trends of using the competitive strategies in wine industry and development of the recommendations to improve the degree of using them.
    Keywords: Competitive advantage, Strategy, Wine industry
    JEL: M19
  5. By: Pau Roldan (New York University); Laurent Cavenaile (New York University)
    Abstract: We develop a model of firm dynamics through product innovation that explicitly incorporates advertising decisions by firms. We model advertising by constructing a framework that unifies a number of facts identified by the empirical marketing literature. The model is then used to explain several empirical regularities across firm sizes using U.S. data. Through a novel interaction between R&D and advertising, we are able to explain empirically observed deviations from Gibrat’s law, as well as the behavior of advertising expenditures across firms, the degree of substitution between R&D and advertising expenditures as firms grow large, and broadly the effects of advertising on both firm and economic growth. We find that smaller firms can be both more innovation- and advertising-intensive as in the data even when there exist increasing returns to scale in research.
    Date: 2016
  6. By: Matteo Foschi
    Abstract: I study a two period model where the buyer suffers from self-control problems and his level of temptation is private information. I derive the optimal behaviour of a seller that offers her product to a buyer. In period 1, the latter decides whether or not to “enter the store” based on the prices posted by the seller. In period 2 he decides how much of the product to buy, if any. Differently from the existing literature, I assume that the seller cannot commit to the prices posted in period 1. I show how, under this framework, the presence of tempted consumers and symmetric information can explain the existence of free vouchers offered by the seller to the consumer in exchange for entering the store. In contrast with classical contract theory, I show that the relatively untempted consumer (the “low type”) can be better off when information about his type is private than when the seller is fully informed. Moreover, the presence of self-control may induce the seller to exclude the relatively strongly tempted consumer (the “high type”) from the market.
    Keywords: Temptation, Self-Control, Commitment, Price Discrimination, Participation Fees, Online Markets, Menus, Vouchers, Screening
    JEL: D42 D82 D86 L19 M31
  7. By: Ömer Bakan (Selcuk University Faculty of Communication)
    Abstract: Corporate social responsibility is one of the the main themes of public relations field. There are a lot of scientific studies about corporate social responsibility in public relations literature. Social responsibility can be considered as a very important concept also for corporations. Many companies are interested in corporate social responsibility because of various reasons. They can contribute their corporate image by conducting social responsibility activities. It is important to understand the views of the managers from private sector about corporate social responsibility. In this study interview method was used. Interviews were conducted with two shopping center managers from Konya in Turkey, and the data was analyzed. As a general result, it is determined that both of the managers of the shopping centers are sensitive about CSR activities. The managers attach big importance on the subject of CSR.
    Keywords: Public relations, corporate social responsibility, shopping center managers,
  8. By: Daniel Melser (RMIT University); Iqbal A. Syed (School of Economics and CAER, UNSW Business School, UNSW Australia)
    Abstract: Official price indexes are usually calculated using matched samples of products. If products exhibit systematic price trends at different points in their life cycle then matched sample methods may introduce bias if the life cycle movement in the sample does not adequately reflect that in the population. This article explores the extent of these life cycle pricing effects and then examines the bias it can introduce in measured inflation. A large US supermarket scanner data set for 6 cities and 6 products over 12 years is used. Using hedonic methods we find that the life cycle component of price change is important across a range of products and cities. To explore the bias introduced by these movements we use simulations which construct indexes with different sample update frequency. For indexes which are never completely resampled we find an annual bias of 0.88 and 0.59 percentage points depending upon whether we use the actual prices or prices imputed from our hedonic model. This compares with absolute biases of 0.24 and 0.08 percentage points for the corresponding cases for samples which are re-selected annually. Thus our results provide strong support for more frequently updating index samples. ]
    Keywords: Consumer price index (CPI), lifecycle pricing, hedonic regression, survey sampling
    JEL: C43 E31
    Date: 2016–07
  9. By: Yasin ÇİLHOROZ (Hacettepe University); Cuma SONÄžUR (Hacettepe University); Mehmet GÖZLÜ (Hacettepe University); Murat KONCA (Hacettepe University)
    Abstract: Until the begining of 1990s, firms had been looking ways to attain the competitive advantage and increase their profitabilites depending on it by realizing economies of scale or benefiting from market failure. Nowadays, with the impact of globalization, particularly great companies have started to purchase other firms or merge with them as a growth strategy. Pharmaceutical industry has the first place where the mergers and acquisitions occur mostly. Among the drives that leads pharmaceutical firms to mergers or acquisitions; high costs of research and development, economies of scale, motivation for new markets, efforts to improve the existing marketing possibilities, trying to keep up with competition can be counted. The aim of this study is to discuss mergers and acqusisitions in pharmaceutical sector and to evaluate global pharmaceutical industry in this terms.
    Keywords: Merger, Acquisition, Growth Strategy, Pharmaceutical Industry
    JEL: F23 G34 L65
  10. By: Victor Fernandez-Blanco (Departamento de Economia, Facultad de Economia y Empresa, Universidad de Oviedo); Maria Jose Perez-Villadoniga (Departamento de Economia, Facultad de Economia y Empresa, Universidad de Oviedo); Juan Prieto-Rodriguez (Departamento de Economia, Facultad de Economia y Empresa, Universidad de Oviedo)
    Abstract: The main aims of this chapter are to identify different groups of music consumers and to analyse the relation between the observed diversity of musical consumption and the socio-economic characteristics of the audiences. This information is essential for producers’ and cultural practitioners’ as well as for public agencies for the purpose of encouraging cultural consumption and the promotion of certain types of music. Using cluster analysis with the 2011 Survey on Spanish Habits and Cultural Practices (SHCP-2011), we have identified 12 distinct clusters of music listeners and obtained a detailed classification of music consumers. As expected, education and age are the main determinants of music consumption. Hence, education and childhood exposure to music could prove to be important instruments for improving music demand especially if they are focused on personal enjoyment and satisfaction rather than on the more formal aspects of music.
    Keywords: music demand, consumers’ profile, cluster analysis
    JEL: D12 L82 Z11
    Date: 2016–07
  11. By: Jean-Francois Mercure
    Abstract: Knowledge acquisition by consumers is a key process in the diffusion of innovations. However, in standard theories of the representative agent, agents do not learn and innovations are adopted instantaneously. Here, we show that in a discrete choice model where utility-maximising agents with heterogenous preferences learn about products through peers, their stock of knowledge on products becomes heterogenous, fads and fashions arise, and transitivity in aggregate preferences is lost. Non-equilibrium path-dependent dynamics emerge, the representative agent exhibits behavioural rules different than individual agents, and aggregate utility cannot be optimised. Instead, an evolutionary theory of product innovation and diffusion emerges.
    Date: 2016–07
  12. By: Sabiha Kılıç (Hitit University); Yusuf Åžahan (Hitit University)
    Abstract: This study aims to identify web site design characteristics and consequently touristic product perception level differences depending on demographic characteristics of tourists and tourist types in tourism marketing, and thus to determine whether there are any differences among the touristic product purchase decisions depending on perception levels of tourists. Travel planner, domestic hotel and tour options, overseas hotel and tour options, transportation services, holiday opportunities and accommodation and tour options have been identified as web site design characteristics. Under the study, data have been obtained by using EEG (Electroencephalography) and eye tracking methods. With EEG method, numerical values at microvolt level were obtained from AF3, F7, F8, F3, F4, AF4 bands on prefrontal lobe areas of the subjects. Prefrontal lobe scans, picks, evaluates, construes stimuli from internal and external sources, creating new ideas and decisions. Therefore, an experimental analysis has been conducted on this area to evaluate touristic purchase decisions. Independent Sample T Test has been used in analyzing working hypotheses. Sample size under the experimental study consisted of a total of 26 volunteer consumers, of whom 13 were women, 13 men, aged 18 and above, who had the capacity to create demand and who purchased holiday package over internet. As a result of analysis of the data, it has been found that, by sex, male consumers had a higher level of perceiving the modules of travel planner, domestic and overseas hotel and tour options, transportation services and holiday opportunities relative to female consumers, that, by age, consumers aged 30 and above had a higher level of perceiving the modules of domestic and overseas hotel and tour options relative to consumers aged below 30, that, by income status, consumers having income of TL 5000 and above had a higher level of perceiving the modules of domestic hotel and tour options and holiday opportunities relative to consumers having income of below TL 5000, that, by educational status, university-graduate consumers had a higher level of perceiving the modules of domestic hotel and tour options, transportation services and holiday opportunities. Postmodern-tourist-type consumers were found to have a higher level of perceiving the module of overseas hotel and tour options relative to other tourist types. As a result of watching 117-second video incorporating web site design characteristics, consumers were found to focus mostly, for 6.211 seconds, on domestic hotel and tour options.
    Keywords: Tourism Marketing, Eye Tracking, EEG(Electroencephalography), Tourist Types, Web Site.
    JEL: M31 D87
  13. By: Fatih Santas (Hacettepe University); Ahmet Kar (Hacettepe University); Gulcan Kahraman (Hacettepe University); Arzu Kursun (Giresun University)
    Abstract: Competition has increased among all health care providers in the provision of health care services in Turkey with the increasing role of the private sector. Perception management of health care consumers has gained importance. In order to be preferred by health care consumers, it is necessary for managers to determine how the perception of health care organizations. This study aims to determine the perception of health care consumers related to public, university and private hospitals. For this purpose, survey was applied to 283 patients who got health care services in outpatient services in a public hospital in Giresun in Turkey. The study shows that there is a statistically significant relationship between hospital preference of consumers and gender, age, income, health insurance and number of hospital visit last one year. The research demonstrates that consumers perceive private hospitals operating in the city center of Giresun on the first rank at the five dimensions (staff behavior, service quality, physical facilities, reputation and cost to consumer).
    Keywords: Health Care Marketing, Consumer, Perceptual Maps, Hospitals
    JEL: M00 I11
  14. By: Cristiano Codagnone (European Commission – JRC); Federico Biagi (European Commission – JRC); Fabienne Abadie (European Commission – JRC)
    Abstract: The phenomenal growth of "sharing economy" platforms, the increasing number of economic sectors affected and the conflicting interests among involved stakeholders explain the huge controversies around the "Sharing economy". This report aims to provide a better understanding of this phenomenon and the issues at stake. The platforms reviewed cover both factor (capital, labour) and product markets (goods and services), i.e. the entire economy (and potentially society at large), taking account of both empirical evidence and rhetorical discourses in order to remove confusion and identify both available and lacking empirical evidence. There is controversy on what the "sharing economy" is or is not. Because of its positive connotation, more companies started to claim belonging to the "sharing economy" although they actually pursue economic self-interest. The conditions of "on-demand workers" raise conflicting views, as earnings for providers are not as high as claimed and practices add to the erosion of the labour contract and to the increase of "contingent" labour. Another controversial issue is whether or not the "sharing economy’ has positive redistributive effects, for which evidence is lacking or not conclusive. Last but not least conflicts, legal disputes, and consumer protection concerns are on the rise. In this respect, the size and scope of a platform may pose very different regulatory and policy challenges which is why a conceptual clarification is needed.
    Keywords: sharing, collaborative, platforms, crowd work, micro work, matching, rating
    Date: 2016–06

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