nep-mkt New Economics Papers
on Marketing
Issue of 2016‒10‒30
fourteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. FOOD OR DRUGS? A CONSUMER PERCEPTION STUDY OF BORDERLINE PRODUCTS By Khedkar, Sukhada; Schaeferdiek, Asli; Bröring, Stefanie
  2. Vertical Information Restraints: Pro- and Anti-Competitive Impacts of Minimum Advertised Price Restrictions By Asker, John; Bar-Isaac, Heski
  3. Predicting advertising volumes: A structural time series approach By Dewenter, Ralf; Heimeshoff, Ulrich
  5. What’s in a Name? Information, Heterogeneity, and Quality in a Theory of Nested Names By Yu, Jianyu; Bouamra-Mechemache, Zohra; Zago, Angelo
  6. La segmentation ethnique en marketing : un outil de maintien de la domination sociale en France. By Sondes Zouaghi
  7. Strategic use of external benefits for entry deterrence: the case of a mobile telephony market By Mikołaj Czajkowski; Maciej Sobolewski
  8. Understanding motivations and determinants of direct sale strategy. The case of Tuscany Region By Bartolini, Fabio; Brunori, Gianluca; Galli, Francesca
  9. Direct-to-Consumer Marketing by U.S. Farms By Katchova, Ani L.; Demko, Iryna; Vogel, Stephen
  10. SEASONAL COST PASS-THROUGH IN THE GERMAN MILK MARKET By Bittmann, Thomas; Holzer, Patrick; Loy, Jens-Peter
  11. Strategic grouping and search for quality journalism, online versus offline By Matthew Ellman; Tomás Rodríguez Barraquer
  12. Which stability for marketing channels? The case of short food supply chains in French agriculture By Aubert, Magali; Enjolras, Geoffroy
  13. What's in a Name? The Effect of Brand on the Level of English Universities' Fees By Andrew Jenkins; Alison Wolf
  14. Colombia, por fuera las cadenas globales de valor: ¿causa o síntoma del bajo desempeño exportador? By Maria del Pilar Esguerra; Sergio Parra Ulloa

  1. By: Khedkar, Sukhada; Schaeferdiek, Asli; Bröring, Stefanie
    Abstract: This exploratory study investigates consumer perception of borderline products between food and drugs, mainly based on the Buying Hierarchy concept. An online survey on consumer perception of 7 borderline products was conducted in Germany in summer 2015, resulting in a sample of 104 consumers. Descriptive statistics results indicate that sensory aspects and packaging presentation may indeed influence consumer perception borderline products. Further, consumers may prefer dedicated products (probably drugs) to address specific health conditions and they seem to be sceptical about the efficacy and health benefits of such products. Overall, consumer perception of borderline products seems to be rather ambiguous.
    Keywords: consumer perception, borderline products, food, drugs, Agribusiness, Research and Development/Tech Change/Emerging Technologies,
    Date: 2016
  2. By: Asker, John; Bar-Isaac, Heski
    Abstract: We consider vertical contracts where the retail market may involve search frictions. Minimum advertised price restrictions (MAP) act as a restraint on customers' information and so can increase search frictions in the retail sector. Such restraints, thereby, soften retail competition - an impact also generated by resale price maintenance (RPM). However, by accommodating (consumer or retailer) heterogeneity, MAP can allow for higher manufacturer profits than RPM. We show that they can do so through facilitating price discrimination among consumers; encouraging service provision; and facilitating manufacturer collusion. Thus, welfare effects may be positive or negative compared to RPM or to the absence of such restrictions.
    Date: 2016–10
  3. By: Dewenter, Ralf; Heimeshoff, Ulrich
    Abstract: Media platforms typically operate in a two-sided market, where advertising space serves as a major source of revenues. However, advertising volumes are highly volatile over time and characterized by cyclical behavior. Firms' marketing expenditures in general are far from stable. Due to planning of future issues as well as financial planning, platforms have to forecast the demand for advertising space in their future issues. We use structural time series analysis to predict advertising volumes and compare the results with simple autoregressive models.
    Keywords: advertising volumes,cyclical behavior,AR-processes,structural time series models
    Date: 2016
  4. By: Staudigel, Matthias; Anders, Sven
    Abstract: Recent controversial policy proposals have aimed at creating a healthier food supply by means of taxation, minimum quality standards or nutritional labeling. Yet the outcomes of such policies strongly depend on the competitive structures and thus substitution processes of individual products within categories, which are not well understood. The objective of this paper is to quantify the source and impact of differentiation in ingredient formulation and especially product health attributes on the competitive positioning of brands under heterogeneous consumer preferences. We employ Berry, Levinsohn and Pakes’ (1995) random-coefficient logit framework to estimate product-level demand for highly differentiated potato and tortilla chips in the U.S. We are specifically interested in the extent to which heterogeneous consumers respond to changes in product formulation, pricing and brand attributes. Our results support the unhealthy-tasty intuition hypothesis to a certain degree with consumers’ utility increasing in sodium and saturated fat levels but decreasing in energy and total fat content. Results further suggest strong impacts of price, brand, and flavor effects on band-level market shares. Our analysis underlines the trade-offs involved in food manufacturers’ decisions to reformulate products in order to comply with policy and public demands for healthier product options that do not sacrifice taste.
    Keywords: Brand-level demand, differentiated products, health-taste trade-off, retail scanner data, random-coefficients logit, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Industrial Organization,
    Date: 2016
  5. By: Yu, Jianyu; Bouamra-Mechemache, Zohra; Zago, Angelo
    Abstract: Collective labels are widespread in food markets, either separated or nested with private brands, in this latter case then known as nested names. We propose a model to explain the rationale of nested names, with collective labels being effective in reaching unaware consumers, while individual brands helping firms in reaching expert consumers. We also incorporate the decision-making process within the group of producers joining collective labels, taking into account their heterogeneity in providing quality. Results show that nested names emerge when consumers become more aware about the label's quality information and when producers become more heterogeneous. Welfare tough may decrease when the group switches to nested names, as they reduce incentives to provide quality for less efficient producers. The results provide insights also to the historical and recent trends in food industries, such as within-label differentiation and label fragmentation, and their welfare implications.
    Keywords: individual brands, collective labels, nested names, consumers' awareness, firms' heterogeneity in quality provision, Agricultural and Food Policy,
    Date: 2016
  6. By: Sondes Zouaghi (THEMA - Théorie économique, modélisation et applications - Université de Cergy Pontoise - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Cet article pose la question de la responsabilité des chercheurs dans la diffusion d’idéologies encourageant la séparation et l’enfermement culturel des groupes sociaux minoritaires dans une relation dominant/dominé. L’ancrage de la segmentation ethnique dans le paradigme colonial est un exemple éloquent dans les recherches en marketing. Or ce paradigme qui sépare le monde en centre et périphérie ou en dominant et dominé n’est pas le seul possible. En s’inspirant des postcolonial studies, les chercheurs en marketing abordent le marché ethnique en étant au plus près des consommateurs et en adaptant leurs méthodologies à la Consumer Culture Theory. Ils prennent ainsi conscience que le sentiment ethnique n’existe pas sans l’intervention du groupe dominant qui impose aux minorités cette manière de se penser. Pour les personnes pluriculturelles, il s’agit de naviguer dans différentes situations sociales en puisant dans les divers fonds identitaires à disposition. Il s’agit donc de sois multiples plutôt que d’identité ethnique. Ils sont créateurs de leur propre identité et cocréateurs de nouvelles catégories sociales émanant des interstices entre groupes dominants et dominés. La démarche postcoloniale pousse donc à se demander si l’ethnicité ne serait pas un artefact qu’aucune réalité interne à l’individu ne sous-tend, sauf celle d’une vision dominée des minorités.
    Keywords: marketing ethnique, segmentation, colonial, postcolonial, consumer culture theory, identité.
    Date: 2015–05–01
  7. By: Mikołaj Czajkowski (Faculty of Economi Sciences, University of Warsaw); Maciej Sobolewski (Faculty of Economi Sciences, University of Warsaw)
    Abstract: Recent models of network competition demonstrate the incentives of incumbents to reduce receiver benefits in rival networks through excessive off-net pricing. Theoretical reasoning behind strategic use of call externalities assumes that receiving calls contributes to consumer utility. This paper tests this critical assumption with choice data elicited from users of mobile telephones. We find that receiver benefits are a significant driver of subscription choices and assess customer base stealing effect encountered by the late entrant. Our findings confirm that call externalities can be used to limit late entrants’ growth as has been observed in many European mobile telephony markets.
    Keywords: call externalities, personal network effects, entry deterrence, mobile telephony, stated preferences, discrete choice experiment
    JEL: L1 L86 D62
    Date: 2016
  8. By: Bartolini, Fabio; Brunori, Gianluca; Galli, Francesca
    Abstract: The paper investigates the determinants of a direct selling strategy as a two steps process. The model firstly identifies barriers or enabling factors that affects the decision to entry in the direct market (both though on-farm selling or through farmers’ markets), and then the share of production value sold directly to consumers within this channel. Data used belongs to Tuscany Agricultural Census (2010). Explanatory variables includes the following dimensions: farmers’ location, household composition, farms and farmers features and policy as payment received. Preliminary results confirm literature findings which identify in localisation, motivation and skills the main determinants of marketing strategies based on direct sale.
    Keywords: direct sale strategy, Tuscany, double-Hurdle model, Agricultural and Food Policy, Farm Management,
    Date: 2016
  9. By: Katchova, Ani L.; Demko, Iryna; Vogel, Stephen
    Abstract: This study analyzes the dynamics of direct-to-consumer marketing by U.S. farms using data from the U.S. Census of Agriculture. We analyze transition probabilities across categories of states based on the value of direct-to-consumer sales. Census-to-Census transition matrices shows high transition rates toward no direct sales amongst farmers. Our findings indicate that farmers do not necessarily have a strong commitment to direct-to-consumer marketing channels, particularly for very small farms that are also livestock farms. Probit models indicate that farmers who continue to engage in direct marketing are more likely to have a higher proportion of direct-to-consumer sales to all sales, are more likely to produce fruit or vegetablesand less likely to produce livestock in comparison to other crops, and are more likely to be larger farms. These results inform policy makers about the dynamics in direct-to-consumer marketing by U.S. farmers.
    Keywords: direct marketing, direct-to-consumer marketing, local foods, Agricultural and Food Policy,
    Date: 2016
  10. By: Bittmann, Thomas; Holzer, Patrick; Loy, Jens-Peter
    Abstract: The objective of this paper is to analyze the extent of seasonality in wholesale cost pass-through between wholesale and retail prices for differentiated milk products in the German dairy market from 2005 to 2011 on a weekly basis. The non-linear nature of the price relationship is modelled by a panel four-regime error correction model. The analysis provides new evidence of significant time-variant wholesale to retail cost pass-through, which also might be interpreted as seasonal changing degrees of competition, pointing to seasonal fluctuations in cost pass-through as a common feature of commodity markets. In particular, costs are passed on to consumers more quickly during fall and winter and the effect of seasonally varying costs is dampened in higher markups.
    Keywords: Non-linear cost pass-through, seasonality, panel error correction model, milk, Demand and Price Analysis, Research Methods/ Statistical Methods,
    Date: 2016
  11. By: Matthew Ellman (IAE-CSIC, BGSE); Tomás Rodríguez Barraquer (MOVE-UAB, BGSE)
    Abstract: This paper investigates how supply-side factors influence the search for quality content in online and offline environments. We show that lower fixed costs of online publishing reduce the incentives to bundle content, as compared to offline journalism. In the presence of asymmetric information over journalistic quality, bundling of content by journalists who publish as a group generates positive informational externalities for users. Journalists group assortatively, better journalists having better partners. Then a consumer who discovers one quality journalist, has found several. The online environment, by reducing the pressure to group up, can lower welfare in our baseline model. We establish conditions for this result and investigate a number of countervailing forces.
    Keywords: Media economics, quality, search, links, matching
    JEL: L13 L82
    Date: 2016–10
  12. By: Aubert, Magali; Enjolras, Geoffroy
    Abstract: Short food supply chains are now recognized marketing channels in French agriculture and are adopted widely by some sectors. This article is part of the growing body of studies on short food supply chains by proposing a study of the dynamics of the adoption of retail selling. The analysis relies on the FADN database for the years 2006 to 2012 and considers farms continuously operating over this period. Descriptive statistics are complemented by a two-step Heckman selection model that considers the duration of retail selling adoption, conditioned by the fact that farmers decide at first to adopt or not such marketing strategy. The analysis identifies that the adoption of such strategy is quite stable over the years. The econometric results confirm the link between the farmer's level of education, the use of workforce, phytosanitary products and the adoption of short marketing channels. They highlight the relationship between the reduction of workforce and phytosanitary products, the implementation of a sound financial situation, as well as sectorial peculiarities in the duration of adoption of retail selling. By contributing to a deeper understanding of short marketing modes, these results reflect the emergence of a specific model of farms centered on the use of short food supply chains.
    Keywords: Retail selling, FADN, wine-growing, market gardening, fruit production, Heckman, Agricultural and Food Policy, Farm Management,
    Date: 2016
  13. By: Andrew Jenkins (Department of Social Science, University College London); Alison Wolf (School of Management, King's College London)
    Abstract: Higher education is increasingly competitive and international in its recruitment of both students and faculty, and international 'league tables' are increasingly publicised and discussed. In many jurisdictions, universities also now have freedom to set fees for at least some students, and those with a high reputation are well placed to charge large amounts. England has a university sector which is highly differentiated in reputational terms, and a fee regime which allows universities to set fees for a large proportion of their students. It is therefore possible, using administrative and income data, to examine how far commonly recognised measures of reputation explain universities' teaching income per student, after controlling for a wide range of other factors. The results confirm that reputation, or 'brand', appears to have a very large impact on fee and teaching income, and that it is therefore entirely rational for English universities to prioritise activities which raise their international visibility and reputation.
    Keywords: Fees, Teaching income, Brand, University reputation, University revenue
    JEL: I22 I23
  14. By: Maria del Pilar Esguerra (Banco de la República de Colombia); Sergio Parra Ulloa (Banco de la República de Colombia)
    Abstract: Las cadenas globales de valor (CGV) se definen como un rango amplio de actividades que llevan a cabo las firmas en sus procesos de producción y que van desde diseño, producción, mercadeo, distribución y servicio al cliente. Estas actividades pueden ser llevadas a cabo por la misma empresa en una determinada ubicación geográfica o por diferentes empresas en distintas ubicaciones. Este documento analiza el papel que está desempeñando Colombia dentro de las CGV y como ha sido su inserción en estas. Para ello se utilizaron estadísticas de la OECD para varios países, en donde se muestra la descomposición de los flujos de comercio y la participación del valor agregado interno y el que viene de otros países. Usando estos datos, se encuentra que Colombia no ha aprovechado suficientemente las CGV que hoy predominan en el comercio mundial. La oferta exportadora colombiana, excesivamente concentrada en productos primarios y en ventas de productos terminados a países vecinos, no favorece una mejor inserción del país en el contexto global a través de este tipo de cadenas. Otro factor fundamental que impide la inserción del país en estas cadenas es la persistencia de múltiples barreras tanto arancelarias como no arancelarias que protegen los distintos eslabones de la cadena productiva de los bienes finales que se fabrican en el país. **** The global value chains (GVC) are defined as a broad range of activities performed by firms in their production processes, ranging from design, production, marketing, distribution and customer service. These activities can be performed by the same company in a particular geographic zone or by different companies in different locations. The objective of this paper is to analyze the role that Colombia is playing within GVC and how has been its integration into these global chains. To do that, we use OECD’s statistics for several countries, where are shown the breakdown of trade flows and the share of domestic and foreign value added. Results from this data indicate that Colombia has not exploited properly its comparative advantages to join the GVCs. The Colombian export supply is excessively concentrated in primary products and sales of finished products to neighboring countries; fact that does not favor better integration of the country in the global context through such chains. Another key factor that prevents Colombia’s integration is the persistence of multiple tariff and non-tariff barriers protecting the links in the production chain of different final goods manufactured domestically. Classification JEL: F10, F13, F14, F21
    Keywords: Colombia, Comercio exterior, Cadenas Globales de Valor, Política comercial
    Date: 2016–10

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