nep-mkt New Economics Papers
on Marketing
Issue of 2016‒11‒13
fifteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  2. Consumer’s preferences and willingness to pay for biofortified juice in Rwanda: Does the nutritional information matter? By Bocher, Temesgen; Sindi, Kirimi; Nshimiyimana, Jean Claude; Low, Jan
  3. Consumer Loss Aversion, Product Experimentation and Implicit Collusion By Salvatore Piccolo; Aldo Pignataro
  4. Israeli Products in the Eyes of Palestinians By islam hassouneh
  5. Endogenous product design and quality with rationally inattentive consumers By Mariana Cunha; António Osório; Ricardo Ribeiro
  6. Assessing producers’ perceptions of protecting coffee and apple mangoes as geographical indications in Kenya By Maina, FW; Mburu, J
  7. Characterizing Life Insurance Marketing: Clients' Perspectives By Sorizo, Reena Beth; Densing, Filjhon; Tura, Regine; Balacy, Garnette Mae
  8. Characterization of consumers’ purchase and consumption behaviour for chicken in Nairobi, Kenya: Targeted insights for value chain positioning By Otieno, David Jakinda; Kerubo, Daniella Maroma
  9. A survey of consumer perceptions and preferences for geographical indication and quality attributes of honey in Kenya By Juma, Charity Nabwire; Otieno, David Jakinda; Oluouch-Kosura, Willis; Gyau, Amos; Oduol, Judith Auma
  10. Price discrimination of ott providers under duopolistic competition and multi-dimmesional product differentiation in retail broadband access By José Marino García García; Aurelia Valiño Castro; A. Jesús Sánchez Fuentes
  11. Analysis of farm-to-retail maize marketing margins in Zambia By Zulu-Mbata, Olipa; Jayne, Thomas S.; Kirsten, Johann F.
  12. 2014 Intermountain States Sheep and Goat Production, Marketing, and Transportation Survey Results By Peck, Dannele; Bastian, Christopher T.; Nagler, Amy M.
  13. Identify the antecedents of distrust in a website By Yang, Jinbi; Sia, Choon Ling; Ou, Carol
  14. Publishing Retail Prices in an Inflationary Context: Evidence from Argentina By Horacio Larreguy; Robert Rodriguez; Laura Trucco
  15. Marketing und Soziale Arbeit. Mehrwert für dezidive und assistive Kunden und die soziale Einrichtung By Schmid, Perpetua; Kern, Axel Olaf

  1. By: Banu Külter DemirgüneÅŸ (Ahi Evran University); Bülent Özsaçmacı (Çankaya University)
    Abstract: It is important for marketers to understand the individuals’ buying decisions in a competitive environment. The concept of decision making style is one of the key determinants of consumers’ behavioral patterns. This study aims to explore the effects of consumers’ decision making styles on buying national and store branded food products. To examine consumer decision making styles, Sproles and Kendall’s (1986) The Consumer Style Inventory (CSI) is adopted in the study. The framework of this study is based on eight consumer decision making style, expected to shape consumers’ national and store brand choice on food products. The empirical analysis is based on data obtained from consumers living in Kırşehir, a city in Turkey. Questionnaires was handed over to 500 customer of retail stores both selling national and their own brands. Firstly, exploratory factor analysis is used to confirm the model, then multiple regression analysis is used to test the hypothesis and to compare consumer’s national and store brand choice, in the context of their decision making styles. The study is expected to help retailers develop suitable strategies for national and store branded food products. In fact it is important to develop a certain and an accurate understanding of consumers’ decision making styles for successful marketing and advertising strategies. Besides, different marketing strategies for both national and store branded food products can be tailored to the characteristics of consumers.
    Keywords: Consumer Decision Making Styles, The Consumer Style Inventory, Store Brand, National Brand
    JEL: M31
  2. By: Bocher, Temesgen; Sindi, Kirimi; Nshimiyimana, Jean Claude; Low, Jan
    Abstract: Identifying consumer preferences and willingness to pay for Orange Fleshed Sweet potato (OFSP) juice were the objectives of the study. This study is based on a structured survey and taste tests administered to 980 randomly approached and verbally agreed participants (384 female and 562 male) selected from seven different markets representing different income groups in Rwanda. Four juices types were tested: two popular brands of 100% pineapple juice, one 100%-OFSP juice, and one 80% OFSP-20% pineapple juice blend. During the taste testing, there was no information provided as to what the type or brand of the juice was. The consumers ranked different juice attributes such as aroma, taste, color, “right” amount of sugar, and aftertaste by rating using a Likert scale (1 to 5, with five being the most preferred). Heckman two-stage probit model is used to analyze willingness-to-pay and a multinomial logit model to analyze the determinants of juice choice. It is indicated that both consumer characteristics and juice attributes influence willingness-to-pay and preference: sex of the consumer, juice buying frequency, aroma, right amount of sugar, taste of the juice, and vitamin A knowledge were positively associated with willingness-to-pay and juice choice. Without nutritional information on OFSP juice, the willingness-to-pay for the standard juices compared to OFSP-based juices were statistically higher; but with nutritional information the willingness-to-pay and juice choice for OFSP juice was significantly improved. It is concluded that nutritional information, particularly about the role that vitamin A plays in health is important in determining the juice preferences and willingness to pay.
    Keywords: Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety,
    Date: 2016–09
  3. By: Salvatore Piccolo (Università Cattolica del Sacro Cuore (Milano), and CSEF); Aldo Pignataro (Università Cattolica del Sacro Cuore (Milano))
    Abstract: Two firms supplying experience goods compete to attract loss averse consumers that are uncertain about how well these goods fit their needs. To resolve valuation uncertainty, firms can allow perspective customers to test (experiment) their products before purchase. We investigate firms' dynamic incentives to allow experimentation and analyze the resulting effects on the profitability and the stability of horizontal price fixing. The analysis shows that, depending on the regulatory regime in place | i.e., whether experimentation is forbidden, mandated or simply allowed but not imposed (laissez-faire) | the degree of consumer loss aversion has ambiguous effects both on the profits that firms can achieve through implicit collusion and on the extent to which these agreements can be sustained. Moreover, we also show that while in static environments consumer welfare is always maximized by a policy that forbids experimentation, the opposite might happen in a dynamic environment.
    Keywords: Collusion, Loss Aversion, Product Experimentation, Vertical Differentiation
    JEL: L12 L15 L44 M30
    Date: 2016–11–07
  4. By: islam hassouneh (Palestine Polytechnic University (PPU))
    Abstract: The effects of consumer ethnocentrism, animosity and product judgments on Palestinian consumer intention to purchase Israeli products was analyzed. To do so, a questionnaire was built, tested and distributed to a sample of 1550 Palestinian consumers in three main cities. Factor as well as multiple regression techniques were then applied. Results indicate that both ethnocentrism and animosity are positively related to consumer reluctance to buy Israeli goods. Findings also suggest that product judgment negatively impacts the reluctance of Palestinian consumers to purchase Israeli products. Furthermore, results show that education is the only personal characteristics variable that affects Palestinian purchase intention.
    Keywords: Animosity, ethnocentrism, Israeli-Palestinian conflict
    JEL: M31
  5. By: Mariana Cunha (Católica Porto Business School and CEGE, Universidade Católica Portuguesa); António Osório (Universitat Rovira i Virgili, Department d'Economia and CREIP); Ricardo Ribeiro (Católica Porto Business School, Universidade Católica Portuguesa)
    Abstract: In some markets, consumers do not know the attributes of all the products that are available in the market, or the prices at which they are offered. To overcome this uncertainty, consumers may gather and process information about those attributes and prices. In this paper, we examine the consequences of consumer costs of doing so on firms' product attribute and pricing decisions. To do so, we follow the rational inattention literature in assuming that, before entering the choice situation, consumers are in contact with all products, but may have an incomplete or imprecise prior idea about their attributes and prices. Further, we also assume that consumers can, at a cost, gather and process information in a non-random fashion about any (sub)set of products, with any precision about their attributes and prices. Furthermore, we assume that products are characterized by both horizontal and vertically differentiated attributes, which we address as design and quality, respectively. We find a number of interesting results. First, if the unit costs of gathering and processing information are homogeneous among consumers, firms should differentiate their products as those costs fall, so to relax the otherwise increasing price competition. This implies that equilibrium prices may increase as these costs decrease, because product differentiation countervails the otherwise negative impact on prices. Second, if the unit costs of gathering and processing information are heterogeneous among consumers, with a sizeable proportion of "informed" consumers, firms should always seek to differentiate their products as maximum as possible, independently of the level of information costs of the "uninformed" consumers. This implies that equilibrium price levels do not increase (and, in fact, tend to decrease) as the unit costs of those consumers decrease and that "informed" consumers serve as a "market competition guardian". Finally, in all the above cases, firms do not need to differentiate themselves along all attribute dimensions. Differentiation along one attribute dimension is more than enough to relax price competition.
    Keywords: Rational Inattention, Information Frictions, Product Differentiation, Pricing.
    JEL: D43 D83 L13 L15
    Date: 2016–10
  6. By: Maina, FW; Mburu, J
    Abstract: Consumers are increasingly demanding for information on product quality, methods and characteristics of geographical region of production. As such, protecting unique products as geographical indications is on the increase. Geographical indications identify a product as originating from a region where a given quality, reputation or other characteristic desired by consumers, is essentially or exclusively attributable to its geographical origin. Having the legal legislation is necessary but not sufficient factor in protection of products as geographical indications (GI). Other essential factors include the producers’ awareness of the uniqueness and willingness to register the product for protection and marketing. Their perceived benefits and other characteristics will influence their decision to register the product as a GI. The study sought to understand underlying variables describing producers’ perceptions of the quality of coffee in Muranga and mango in Makueni as potential geographical indications. At least 132 producers randomly sampled were interviewed in each county using semi-structured questionnaires. The study applied factor analysis to summarise producers’ perceptions and regressed the resulting factors against a set of explanatory variables to determine factors influencing these perceptions. Six and five underlying variable (factors) were identified for coffee and mango producers’ perceptions respectively. The factors explained at least 75.3% and 71.5% of the variance in the original variables for coffee and mango producers’ perceptions respectively. The regression results with varying Fstatistics showed the importance of conducting specific analysis for each product in each region to identify the potential for protecting the products as GI.
    Keywords: Factor analysis, geographical indications, producer perceptions, coffee, apple mango, Crop Production/Industries, Environmental Economics and Policy, Land Economics/Use,
    Date: 2016–09
  7. By: Sorizo, Reena Beth; Densing, Filjhon; Tura, Regine; Balacy, Garnette Mae
    Abstract: This study was conducted to develop a model characterizing life insurance marketing as perceived by prospective clients. Survey method was used involving 200 professionals working in Digos City, Davao del Sur. Exploratory factor analysis was the primary statistical tool used to extract the latent constructs of life insurance, following a principal components analysis to assess the number of components. Results revealed that life insurance marketing is multidimensional and is a function of five dimensions, namely security and integrity, tangibles, credibility, customer service, and value-for-money. These five dimensions are the areas that typify a model that would define the type or quality of life insurance marketing that clients need from insurance companies. The study recommends that the model would be considered in their strategic marketing action plans to effectively capture their prospects. Moreover, testing the items of the developed framework is encouraged to establish its psychometric properties.
    Keywords: life insurance, marketing, service marketing, factor analysis, principal components analysis
    JEL: G22 G32 M3 M31
    Date: 2016–06–06
  8. By: Otieno, David Jakinda; Kerubo, Daniella Maroma
    Abstract: Understanding consumer desires is important for effective positioning of goods and services in various market segments. Comprehensive analyses of chicken consumers’ behaviour are limited in the literature; with none in the Kenyan market. This study assessed chicken consumers’ preferred purchase outlets, forms of chicken purchased, frequency and timing of consumption in the peri-urban areas of Nairobi city, Kenya. A random sample of 200 chicken consumers was interviewed at various purchase and consumption places using structured questionnaires. Qualitative methods were applied in the data analysis. Results showed that most respondents buy chicken from roadside markets than other outlets, broilers are preferred to local chicken, consumers prefer fresh slaughtered chicken rather than other forms such as live or cooked, and over two-thirds of the consumers buy chicken less frequently - after a week or longer duration. Further, more than three-quarters of respondents reported that they consume chicken at home compared to when in transit or while away at work. Over two-thirds of the consumers considered cleanliness of place of sale and the seller, price and accuracy of the quantity offered as the main issues that they are concerned with when making purchase decisions. More than half of the consumers also reported that they preferred naturally reared chicken without growth hormones/stimulants. These findings offer useful insights for chicken producers and traders to provide chicken with acceptable features, in the right quantities and timing that fits within consumers’ desires. This will enhance consumer safety and satisfaction, as well as ensure responsible business practices.
    Keywords: Chicken, consumer, purchase, behaviour, Kenya, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries,
    Date: 2016–09
  9. By: Juma, Charity Nabwire; Otieno, David Jakinda; Oluouch-Kosura, Willis; Gyau, Amos; Oduol, Judith Auma
    Abstract: Geographical indication (GI) is an important measure for revealing the origin of a product and communicating the salient site-specific practices embedded in the value chain. For most products and services, recent literature has extensively documented consumer concerns for GI and other quality attributes especially in the developed nations. However, in the developing countries there is very limited empirical analysis of these aspects; in fact there is a complete lack of research insight on GI for honey in Kenya. The present study contributes to fill this knowledge gap through a choice experiment survey of consumer perceptions and preferences for GI and other important quality attributes in honey. The study applied the random parameter logit (RPL) model to analyze data from a random sample of 478 honey consumers drawn from three distinct areas in Kenya: a rural semi-arid honey producing area, Kitui; a humid production-consumption area, Nakuru and; a cosmopolitan net consuming area, the city of Nairobi. Results show that consumers have significant positive preferences for GI labelling, floral source disclosure, organic production methods and joint public-private certification of honey quality. The middle income category of consumers and the relatively aged ones have a specifically strong preference for organic honey. These insights should be integrated in the improvement of honey value chains.
    Keywords: Geographical indication, quality-attributes, honey, consumers, Kenya, Consumer/Household Economics,
    Date: 2016–09
  10. By: José Marino García García; Aurelia Valiño Castro; A. Jesús Sánchez Fuentes
    Abstract: Network neutrality regulation prevents price discrimination from Access Providers to Content Providers and product differentiation in terms of connection quality in the retail broadband access market. This paper analyzes the economic implications of price discrimination under duopolistic competition and multi-dimensional product differentiation in retail internet access using a sequential-moves game theoretic model. Under this framework, we discuss the impact of product differentiation and price discrimination on social welfare, and offer systematic simulations using feasible ranges for parameters value to help discern the impact of departing from network neutrality regulation on social welfare.
    Keywords: network neutrality, two sided markets, price discrimination, product differentiation, queuing theory, network congestion, duopoly, competition policy.
    JEL: C70 D43 L10 L13 L51 L86 L96
    Date: 2016–11
  11. By: Zulu-Mbata, Olipa; Jayne, Thomas S.; Kirsten, Johann F.
    Abstract: Marketing margin analysis has usually been used to examine the behaviour and competitiveness of markets and the share of a retail commodity price accruing to farmers. Most studies examining marketing margins have typically considered margins to vary either spatially or temporally; with little attempt to understand how or why marketing margins may vary across households holding both space and time constant, even though inter-household variability has been observed in most rural maize marketing areas. This article determines the relative importance of spatial, temporal, and household-specific factors in the maize prices received by farmers in Zambia and in the associated farm-to-retail marketing margin under the assembly trader channel. We find that spatial factors account for the largest source of explained variation (72%) in the maize marketing margin and farm-gate prices obtained by farmers followed by temporal factors (16.7%). Household-specific factors account for the smallest source of explained variation (11.3%) in marketing margins, with marital status, kinship ties to the chief or village elders, and access to price information being the most important. Wide inter-household variation in farm-gate prices within the same locality and month suggest the importance of unobserved household-specific factors. These results hence indicate that the prices that maize farmers in Zambia obtain are not fully exogenous to farmers as often assumed. Programs that generate and improve farmers’ access to timely market information can raise prices that farmers obtain, while improved road infrastructure in areas where marketing margins are high could significantly improve farm-gate prices.
    Keywords: Marketing Margin, Maize, Traders, Zambia, Crop Production/Industries, International Relations/Trade, Marketing,
    Date: 2016–09
  12. By: Peck, Dannele; Bastian, Christopher T.; Nagler, Amy M.
    Abstract: Survey instruments were developed to collect information from sheep and goat producers in four western states (Idaho, Montana, Utah, and Wyoming) about their livestock production, marketing, transportation, and disease management practices. Resulting information is intended for use by USDA-APHIS to update a national model of potential disease spread during a hypothetical outbreak of Foot and Mouth Disease (FMD) or other highly contagious animal diseases. Beyond the primary purpose, the survey data can be used to paint a more nuanced picture of current sheep and goat production and marketing practices in the region. Markets for meat, fiber, dairy as well as grazing services are evolving and the information provided by producers is a valuable resource for understanding these changes in the region.
    Keywords: Sheep and goats, production, marketing, transportation, Intermountain West region, producer survey, Agribusiness, Livestock Production/Industries,
    Date: 2016–03
  13. By: Yang, Jinbi; Sia, Choon Ling; Ou, Carol (Tilburg University, School of Economics and Management)
    Abstract: It has been widely accepted that distrust is qualitatively different from trust. Yet scholarly knowledge about the antecedents of distrust is scarce, while the antecedents of trust have received extensive attention. Furthermore, little empirical research has explored how website factors impact on the formation of distrust in a user. Drawing upon the review of distrust literature and competence-motive perception, we propose a new theoretical framework to explain how website factors impact on perceptions of the attributes of a given website, which in turn form user distrust. In this research, distrust is triggered by website evaluations in two areas, namely malevolence and incompetence. These two attributes are determined by three website factors: lack of structural assurance, interface design, and lack of third-party recognition. The proposed research model of distrust formation in the online context is verified by an online survey with 283 valid responses. We offer theoretical and practical implications for our findings.
    Date: 2015
  14. By: Horacio Larreguy; Robert Rodriguez; Laura Trucco
    Abstract: When inflation is high, the dispersion of prices across sellers of the same good increases, and both sellers and consumers lose sight of reference prices. As a result, the degree of competition in the market weakens. The government of Argentina, a country with a current 35% annual inflation rate, has recently launched a program that provides consumers with store-level daily-updated information on prices for goods sold in major supermarkets across the entire nation. In this project, we use a unique dataset with this rich information on daily geolocated prices in order to study the effect of publishing prices on competition across stores, and its consequences on price dispersion.
    Date: 2016–01
  15. By: Schmid, Perpetua; Kern, Axel Olaf
    Abstract: As marketing is fairly unknown to social institutions or at least negatively connotated it is shown that the marketing perspective is beneficial for clients in social work settings as well as for the institution and society because the quality of services delievered will rise.
    Keywords: social work, marketing,
    JEL: I11
    Date: 2016

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