nep-mkt New Economics Papers
on Marketing
Issue of 2016‒12‒18
six papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Identifying the Factors affecting the customer’s Buying Behavior: A case study of Men’s cosmetic Market in Karachi, Pakistan. By Khan, Amber Yamin; Karim, Emadul; Abbas, Omair
  2. Product Design and Decision Rights in Vertical Structures By Dubois, Pierre; Jullien, Bruno
  3. Vertical Mergers in Platform Markets By Pouyet, Jérôme; Trégouët, Thomas
  4. How to trigger mass market adoption of electric vehicles? Factors predicting interest in electric vehicles in Germany By Wesche, Julius P.; Plötz, Patrick; Dütschke, Elisabeth
  5. The Effect of Hurricane Matthew on Consumer Spending By Aditya Aladangady; Shifrah Aron-Dine; Wendy E. Dunn; Laura Feiveson; Paul Lengermann; Claudia R. Sahm
  6. Multiproduct Pricing Made Simple By Armstrong, Mark; Vickers, John

  1. By: Khan, Amber Yamin; Karim, Emadul; Abbas, Omair
    Abstract: The purpose of this study was to determine various factors such as age, occupation, income, models and celebrity influence, as well as the role of metrosexuals (independent variables), which have an effect on consumers in buying men’s cosmetic products (dependent variable). Specific objectives were to study the impact of factors affecting customers buying behavior in the men’s cosmetic market, to determine the impact of appearance on a person’s success in their professional life, as well as to ascertain the age group which uses men’s products the most. A study of the literature review suggested factors which affect the buying behavior of men purchasing male cosmetic products include age, occupation, income, celebrity influence and a rise in the metrosexual phenomenon, however, the research problem pertained to a lack of knowledge on how much of these factors individually affect consumer behavior with regards to purchases. As such, the study was significant and therefore needed to be carried out to examine the impact of various factors on the buying of men’s cosmetic products. Methodology used in this study was quantitative in nature. The method of primary data collection was carried out through a close ended questionnaire administered to 50 participants. Collected data was tabulated, and the analysis was conducted with the help of SPSS. It was concluded that age, occupation, and role of metrosexuals has had a significant impact on the consumer’s buying behavior in relation to the purchase of men’s cosmetics especially in Karachi. It was found out that majority of the people believed that using men’s cosmetics helps them in succeeding in their occupation, improves their appearance , spend a sum of money on buying men’s cosmetics. This study will be helpful for new researchers to understand the impact of these various factors on consumers in buying men’s cosmetic products in Karachi, and for manufacturers to align their promotion strategies for maximum effect.
    Keywords: Customer’s Buying Behavior, Men’s Cosmetic Market, Metrosexuals, Models influence
    JEL: D1 L66 L67 M31
    Date: 2016–04–14
  2. By: Dubois, Pierre; Jullien, Bruno
    Abstract: The paper argues that the emergence of private labels can be partially explained by the new information technologies available at the retail level. In our approach, the owner of a brand has ìdecision rightsîon product design, while the details of the production and distribution are left to contractual negotiation. Manufacturers have privileged information about the cost of improving quality, while distributors have private information on the impact of quality on demand. We show that ownership of the brand should be allocated to the party with a relative informational advantage. In particular, if the information of the distributor improves due to a technological shock on data collection and information management, it may become optimal for the distributor to introduce its own brand, rather than to distribute a manufacturerís brand.
    Keywords: store brand, private label, asymmetric information, vertical structures, product design, decision rights
    Date: 2016–11
  3. By: Pouyet, Jérôme; Trégouët, Thomas
    Abstract: We analyze the competitive impact of vertical integration between a platform and a manufacturer when platforms provide operating systems for devices sold by manufacturers to customers, and, customers care about the applications developed for the operating systems. Two-sided network effects between customers and developers create strategic substitutability between manufacturers' prices. When it brings efficiency gains, vertical integration increases consumer surplus, is not profitable when network effects are strong, and, benefits the non-integrated manufacturer. When developers bear a cost to make their applications available on a platform, manufacturers boost the participation of developers by affiliating with the same platform. This creates some market power for the integrated firm and vertical integration then harms consumers, is always profitable, and, leads to foreclosure. Introducing developer fees highlights that not only the level, but also the structure of indirect network effects matter for the competitive analysis.
    Keywords: foreclosure; network effects; Two-sided markets; vertical integration
    JEL: D43 L10 L40
    Date: 2016–12
  4. By: Wesche, Julius P.; Plötz, Patrick; Dütschke, Elisabeth
    Abstract: Plug-in electric vehicles (PPEVs) have noteworthy potential to reduce global and local emissions and are expected to become a relevant future market for vehicle sales. Both policy makers and car manufacturers have an interest to understand the future PEV user groups, also those beyond the current 'early adopter'. However, there are only a few empirical results available about potential future PEV users. Here, we use data from a representative survey on PEV interest from Germany to analyse factors that are related to interest in PEVs of private car buyers. Interest in PEV implies a positive attitude towards this new technology and is thus a prerequisite for later adoption. Our results show that technology affinity and the feeling that an PEV can serve the user's driving need are positively connected to interest in PEVs. Furthermore, persons that connect a strong feeling of independence with conventional vehicles are less likely to be interested in PEVs. Our results indicate that automakers promoting PEVs should focus their marketing on the new yet ready technology in the next years.
    Keywords: electric vehicles,early adopter,early majority,market diffusion,consumer behaviour
    Date: 2016
  5. By: Aditya Aladangady; Shifrah Aron-Dine; Wendy E. Dunn; Laura Feiveson; Paul Lengermann; Claudia R. Sahm
    Abstract: In this note, we take a step forward in this regard using a new dataset of transaction volumes to examine how consumers reacted to Hurricane Matthew, which struck the East Coast in October 2016.
    Date: 2016–12–02
  6. By: Armstrong, Mark; Vickers, John
    Abstract: We study multiproduct firms in the contexts of unregulated monopoly, regulated monopoly and Cournot oligopoly. Using the concept of consumer surplus as a function of quantities (rather than prices), we present simple formulas for optimal prices and show that Cournot equilibrium exists and corresponds to a Ramsey optimum. We then discuss a tractable class of preferences that involve a generalized form of homotheticity. Profit-maximizing quantities are proportional to efficient quantities. We discuss optimal monopoly regulation when the firm has private information about its cost vector, and find situations where optimal regulation leaves relative price decisions to the firm.
    Keywords: cost passthrough; Cournot oligopoly; homothetic preferences; monopoly regulation; multidimensional screening; Multiproduct pricing; Ramsey pricing
    JEL: D42 D43 D82 L12 L13 L51
    Date: 2016–12

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