nep-mkt New Economics Papers
on Marketing
Issue of 2016‒08‒07
eleven papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  2. Newspapers in Times of Low Advertising Revenues By Angelucci, Charles; Cagé, Julia
  3. Evaluating Advertising Effectiveness of Creative Television Advertisements for High Involvement Products. By Ali, Mazhar
  4. The determinants of selling through a short food supply chains: an application to the French case By Magali Aubert
  6. The Role of Emerging Economies in the Global Price Formation Process of Commodities: Evidence from Brazilian and U.S. Coffee Markets By Martin T. Bohl; Christian Gross; Waldemar Souza
  8. Collusion, Customization and Transparency By Francisco Martínez Sánchez
  9. Consumer Theory with Inattention to Prices By Daniel Martin
  10. A regression model of product differentiation By Mogens, Fosgerau
  11. Do good things come in small packages? Willingness to pay for pomegranate wine and bottle size effects By Drichoutis, Andreas C.; Klonaris, Stathis; Papoutsi, Georgia

  1. By: Manoj B. Vanara
    Abstract: Customer satisfaction is defined as the way that customer usually view or feel about certain services and products. Internet Broadband services providers are of paramount importance in the developing economy of India. Many Internet Broadband service providers are offering various services in the market. Customer satisfaction with regards to Broadband services is resulting from the evaluation of service provided by an ISP to an individual in relation to expectations. This study is mainly focused to understand the Consumer satisfaction with regards to of BSNL Broadband services in Ahmedabad. The outcomes of this survey can be used by the BSNL, for understanding the customers satisfaction in respect to Broadband services and add value to their customers to increase their market share and Brand Image. This paper also attempts to understand the brand awareness, competitive strength of the company and problems faced by the customers, which helps the company to take appropriate measures to solve the problems. The Primary data was collected through survey method and was analyzed with the help of various statistical tools to draw meaningful conclusion. Key words: Customer satisfaction, Broadband
    Date: 2016–06
  2. By: Angelucci, Charles; Cagé, Julia
    Abstract: Newspapers' advertising revenues have declined sharply in recent decades. We build a model to investigate the consequences on newspapers' pricing and quality choices of a reduction in advertisers' willingness to pay for readers' attention. In our model, selling subscriptions in addition to newsstand issues allows to price discriminate between readers. We show that lower advertising revenues decrease newspapers' incentives to provide quality, which increases newspapers' incentive to price discriminate whenever readers' sensitivity to quality is sufficiently high. We build a unique dataset on French newspapers between 1960 and 1974 and perform a difference-in-differences analysis using a "quasi-natural experiment": the introduction of advertising on television in 1968, which affects national newspapers more severely than local ones. We find robust evidence of increased price discrimination and decreased quality as a result of the drop in advertising revenues, which may help rationalize current industry trends.
    Keywords: advertising; Newspaper industry; Newspaper quality; price discrimination; Two-sided markets
    JEL: L11 L15 M37
    Date: 2016–07
  3. By: Ali, Mazhar
    Abstract: This study investigates advertising effectiveness of creative TV advertisements (Ads) for high involvement products. The majority of such studies have been conducted using low involvement products. There is a need to conduct a research to find out the effectiveness of creative advertisements for high involvement products.This study will fill this knowledge gap. This study aimed at measuring the impact of creativity in Ads on Attitude toward Advertisement,Unaided Recall and Purchase intention. It involved 94 university students in an experimental research. Paired sample t-test was used for evaluating creative and control Ads .Data analysis reveals that creative Ads are better than control Ads in generating favorable attitude toward ad and high Ad recall but equally ineffective in persuading customers to buy. Binary logistic regression showed small role of creativity in causing high Ad recall while multiple regression analysis confirmed the supremacy of creative Ads for forming a favorable attitude toward Ad.
    Keywords: Creativity, advertising effectiveness, purchase intention, Aided Recall, Un-aided Recall, Product involvement.
    JEL: M37 M39
    Date: 2016–01
  4. By: Magali Aubert (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - INRA Montpellier - Institut national de la recherche agronomique [Montpellier] - CIHEAM - Centre International des Hautes Études Agronomiques Méditerranéennes)
    Abstract: A Short Food Supply Chain is a marketing channel whose developments answers the emerging demand of both public policy and consumers’ requirement mainly in terms of quality. Based on the exhaustive census of all French farms in 2010, the aim of the article is to understand what are the individual and structural determinants of selling through a short food supply chain for producers: are there some factors leading to adopt such marketing channel? To answer this question, the resource-based view is mobilized. This theory highlights the relationship between the diversification of marketing channels and the individual characteristics of farmers and the structural characteristics of their farm. Since the choice observed is a dichotomous one, a logit model is implemented to identify determinants of short food supply chain adoption. This analysis lets underline differences observed between farmers who never sell though a short supply chain from the others in terms of both individual and structural specificities. Econometric results highlight that selling through this marketing channel is a commercial strategy implemented by younger and more educated farmers. Moreover, these farmers are installed on smaller farms. Even smaller, the implementation of a short food supply chain requires relatively more workforce. As a matter of fact, implementing such marketing channel translates into a need of workforce that is higher than for others farms and more precisely permanent workforce.
    Keywords: short food supply chain,2010 agricultural census,adoption,resource-based view
    Date: 2015–12–10
  5. By: Lokesh Verma; Jawaid Ahmad Itoo
    Abstract: Caste system may have origins in experiences derived from, what is known in analytical psychology as, “the personal and collective unconscious.” India is said to be home of social stratification which is found in the form of caste, based on the birth of the individual in a particular caste/family. In spite of strict religious prohibition of caste system, yet social stratification and caste like features has crept in some Muslim societies and Kashmiri society is no exception. Although, caste system is in Kashmir is not so rigid and complex but we can’t deny the fact the kashmiri society is not caste free society (Irshad, Ahrah and Zubar, 2013). The present study attempts to study the personality traits of college students of Kashmir division belonging to two dominant upper caste (Syeds and Khan) and five under- privileged lower caste (Hajam, Kumar, Gurjar,Lohar and Teeli,) will be taken into consideration. For this study a sample of 800 was drawn by using cluster sampling technique. Key words: Crept, dominant, under-privileged,cluster
    Date: 2016–06
  6. By: Martin T. Bohl; Christian Gross; Waldemar Souza
    Abstract: This paper examines the role of the Brazilian futures exchange, BM&F Bovespa, in the global price formation process of Arabica coffee. Using a multivariate GARCH model we find bi-directional information transmission in terms of spillover effects between the BM&F Bovespa futures contract for Arabica coffee and the Coffee C' futures contract traded at the Intercontinental Exchange (ICE) in New York. Moreover, our empirical results indicate that the influence of the BM&F Bovespa futures market on the ICE futures market increased during the 2010-2012 boom in co ee prices, suggesting a greater role of local information for volatility dynamics during this period. We also show that local Brazilian spot markets incorporate information from both the domestic and the foreign futures market. Taken together, our findings highlight the great relevance of the BM&F Bovespa futures market in the global price formation process of Arabica coffee.
    Keywords: Commodity futures markets, cross-border volatility transmission, emerging futures exchanges, price spikes in commodity markets
    JEL: G12 G13 G14 G15 Q02
    Date: 2016–07
  7. By: Krupa Mehta
    Abstract: The store brands, otherwise known as private labels, are changing the future of modern trade outlets in India. Started on a low key profile, such as low price, low quality and limited movement, the store brands have gone a long way in establishing its credentials. The private labels have 50 % or more than 50% market share in many parts of the developed world. The private labels are pervasive in personal care, home care, processed food, groceries and consumer durables etc. Key words: FMCG, Grocery, Private brands, Retail chains
    Date: 2016–06
  8. By: Francisco Martínez Sánchez (Universidad de Alicante)
    Abstract: We analyze the e¿ect of customizing a product on the ability of firms to tacitly collude on prices when some consumers are not informed about price. Following Bar-Isaac et al. (2014), we allow firms to be located inside the circle in the Salop model (1979). Our analysis shows that the e¿ect of product customization on the stability of collusion depends on the sensitivity of consumers’ utility to the degree of customization. We also obtain that collusion becomes harder to sustain when more consumers are informed about prices. From our welfare analysis, we conclude that the e¿ects of customizing depend on the sensitivity of consumers’ utility to the degree of customization. Finally, we find that transparency has no e¿ect on the equilibrium outcome under collusion. However, at the punishment stage, the e¿ect of transparency is positive on the consumer surplus and negative on the producer surplus. Since these two e¿ects cancel each other out, we obtain that having more informed consumers on prices does not a¿ect welfare.
    Keywords: Collusion; Customization; The Salop model; Transparency
    JEL: D40 L10 L40
    Date: 2016–08
  9. By: Daniel Martin (Northwestern University)
    Abstract: In this paper I propose a general model of consumption for consumers who are inattentive to prices. The behavioral implications of this model can be summarized by a set of non-parametric and testable restrictions on demand functions that are simple and bear a resemblance to classical restrictions, but are novel in their construction. The empirical performance of these restrictions is assessed using consumption data from setting where there is substantial evidence of inattention to prices: grocery store purchases.
    Date: 2016
  10. By: Mogens, Fosgerau
    Abstract: This note develops a model of product differentiation that can be estimated using standard regression techniques and applies it to a panel data set of new car sales. The model allows for complex substitution patterns according to an overlapping nest structure that makes cars closer substitutes if the share brand, body type, and/or quality level. A nest comprising all the car alternatives ensure that they are closer substitutes with each other than with the outside good. In addition, the model comprises fixed effects by car model, controlling for unobserved car quality.
    Keywords: Market shares; complex substitution; endogeneity; discrete choice; new cars
    JEL: C23 C25 C26 D12 L62
    Date: 2016–07–01
  11. By: Drichoutis, Andreas C.; Klonaris, Stathis; Papoutsi, Georgia
    Abstract: We evaluate the claim that bottle size formats signal quality changes, using a controlled laboratory experiment where we simultaneously auctioned two different sweet wines: a pomegranate wine and a grape wine. We varied on a between subjects basis the size of the bottle, from 500ml to 750ml, but kept the wine content of the bottle constant across bottle size formats. We also explored in a within subjects design the effect of expectations for the wines, blind tasting and information on willingness to pay. For the grape wine we find evidence consistent with diminishing marginal utility while for the pomegranate wine we find a premium for the smaller bottle size which is consistent with changes in perceived scarcity of the wine. We also find that information is adequate in offsetting the negative effect from the tasting treatment.
    Keywords: second price auction; laboratory experiment; wine; sensory analysis; willingness to pay; bottle size effect
    JEL: C23 C24 C91 D12 M31
    Date: 2016–07–26

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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.