nep-mkt New Economics Papers
on Marketing
Issue of 2017‒01‒29
eleven papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  2. Product-Consumer Substitution and Safety Regulation By Konrad Grabiszewski; Alex Horenstein
  3. The Hijabi Self: Authenticity and Transformation in the Hijab Fashion Phenomenon By El-Bassiouny
  4. MAREA Trading Simulations Experiments with the Focus on Marketing Campaign By Roman Šperka; Michal Halaška
  5. Along the Giant’s Footprints: Bama China By Wang, H. Holly; Li, Yi'an
  6. Young Food Consumers: How do Children Respond to Point-of-Purchase Interventions? By Cash, Sean B.; McAlister, Anna R.
  7. Theravada Buddhism and Thai Luxury Fashion Consumption By Mao Ning; Michael McAleer
  8. Examining the Effect of Food Recalls on Demand: The Case of Ground Beef in the U.S. By Zare, Samane; Zheng, Yuqing; Buck, Steven
  9. Evolving consumer behavior: remarks at the National Retail Federation Annual Convention, Jacob K. Javits Convention Center, New York City By Dudley, William
  10. The Effect of Market Segmentation on Consumer Welfare: The Case of Organic and Conventional Fruits and Vegetables By McFadden, Brandon; Mullally, Conner
  11. The Effects of Internet Book Piracy: The Case of Japanese Comics By Tatsuo Tanaka

  1. By: Meloyan, Artak; Bakhtavoryan, Rafael
    Abstract: No other form of promotional tools can substitute coupons in promotional campaigns. Due to their unique dual impact (price discount and informational stimulant) on consumption, coupons are widely used by different manufacturers and stores. However, to the best of our knowledge, no prior research has been done regarding the analysis of the impact of coupons on market shares of national brand and private label food products. To fill this void, the goal of this study was to examine the relationship between coupons and market shares in the context of national brand and private label food products by estimating the Almost Ideal Demand System model and using the Nielsen Homescan panel data on household purchases of ready-to-eat cereal, yogurt, and spaghetti sauce from January of 2012 through December of 2014. Estimation results revealed a significant relationship between coupon values and market shares of the food product brands considered. However, the effects of coupon values on the market shares were varied for national brands and private labels. In particular, with the exception of other brands of yogurt, for national brands, market share elasticities with respect to coupon values were positive, suggesting that market share of national brands increased with an increase in coupon values. For private label of cereal and spaghetti sauce, market share elasticities with respect to coupon values were negative, indicating that an increase in coupon values led to a decline in their market shares.
    Keywords: coupons, market shares, brands, demand system, Consumer/Household Economics, Demand and Price Analysis, D12,
    Date: 2017–01–16
  2. By: Konrad Grabiszewski (University of Miami); Alex Horenstein (University of Miami)
    Abstract: We develop a theory of safety regulation where product safety and consumer skills are negatively correlated. This correlation, which we call the product-consumer substitution, is driven by demand and supply: consumers with lower skill choose safer products, while sellers offer less safe products only to consumers with high skills. We derive two predictions that are inconsistent with the standard theory: (1) an improvement in safety (regular effect of regulation) can occur in tandem with the standard offsetting behavior, and (2) a deterioration of safety (Peltzman effect) can occur without the standard offsetting behavior. As policy implication, we propose to use simultaneously product and consumer regulation. We validate our theory using a dataset with more than 2 million observations obtained from iRacing, an online racing simulation. Our dataset contains objective measures of product safety and consumer skills which makes it unique among the datasets used in the safety regulation literature.
    Keywords: safety regulation, adverse selection, moral hazard Publication Status: Under Review
    JEL: K2 L5 D8
    Date: 2017–01–18
  3. By: El-Bassiouny (Faculty of Management Technology, The German University in Cairo)
    Abstract: The purpose of this research is to delve into the intricate relationships be-tween hijab culture and consumption. The research questions whether the hijab consumption phenomenon is an icon of fashion or an authentic blend of religious and cultural tenets. The research utilizes a netnographic approach in a qualitative manner similar to ethnography on the internet. An online forum is created on social media for Egyptian hijabista consum-ers who reflect on their self-transformations with respect to the hijab phe-nomenon. The findings of the study give insights relevant to the consum-er experiences of the hijab fashion phenomenon. The results are analyzed using Holt’s (1995) consumption parabola, where the insights show the consumption as experience, consumption as integration, consumption as play, and consumption as classification metaphors in action. Most insights show that the hijab fashion experience combines authentic religious meanings with cultural ones. The study methodology is qualitative there-by putting limitation on generalizing the findings to other consumers and contexts. The findings are, however, relevant to fashion designers and fashion marketers who aim at understanding the hijabista culture. The results are also relevant to consumer culture theorists as well as to mac-romarketing researchers looking at authenticity in the hijab fashion phe-nomenon. The research is relevant in understanding the hijabista culture, which is a growing consumer culture around the globe. The research com-bines the literatures on consumer culture theory, self-transformations, and authenticity with regards to the hijab consumption phenomenon. Such relationships were not explored previously in the literature.
    Keywords: none
    Date: 2017–01
  4. By: Roman Šperka (Department of Business Economics and Management, School of Business Administration, Silesian University); Michal Halaška (Department of Business Economics and Management, School of Business Administration, Silesian University)
    Abstract: The aim of this paper is to present the use of innovation of decision function in the implementation of a multi-agent simulation model of a trading company with focus on marketing campaigns. We modeled a real trading company dealing with retailing of cables. The subject of the presented research are simulation experiments in MAREA software framework to evaluate the effectiveness of marketing campaign on a company’s Key Performance Indicators (KPIs) during 365 days. We implemented three different scenarios and compared the trading results. In the first scenario company does not campaign at all, in the second scenario company uses one marketing campaign during simulation time, and in the third scenario company uses marketing campaign regularly throughout whole simulation time. We assumed that marketing communication affects customers’ preferences in our model, but cannot force them to buy goods they are not willing to buy. We incorporated price sensitivity and direct effects of marketing communication on customers, though implemented model is well suited for advertising, but can hardly simulate marketing forms as e.g., sponsorship or public relation. Further we assumed only positive effects of marketing campaigns. Based on the assumptions we determined and evaluated several hypotheses. Firstly, we present a multi-agent system details and a formal description of a decision function which is used to establish the preferences of customers. Secondly, we present MAREA software framework and lastly we discuss the simulation results. The results obtained show that while one marketing campaign may have momentarily effects on company’s KPIs, it does not have effect on the final results of the simulation. On the other hand, the regular campaigning has statistically significant impact on company’s KPIs.
    Keywords: multi-agent system, framework, model, simulation, software, business process, trading, MAREA
    JEL: F1 F31
    Date: 2017–01–17
  5. By: Wang, H. Holly; Li, Yi'an
    Abstract: When McDonald’s entered Chinese market in 1989, Bama Company, a key supplier of McDonald’s deserts, followed to explore this potential high-volume bakery goods kingdom in Asia. Having been influenced by western culture since the economic reform in the 1980s, Chinese people, especially the young generation, love to enrich their daily diet with western food. Along with American fast food booming in China, bakery products, such as cakes, cookies, and other deserts are also well accepted by consumers. This case introduces how Bama grows its international market by following its giant client. While maintaining its long term partnership with McDonald’s, Bama also develops other clients in the fast food chain in this unfamiliar yet exciting world. Bama China further seeks more expansion and explores larger growth in the Asian-Pacific region to develop bakery markets. This case study discusses several options for the future of Bama China.
    Keywords: Chinese bakery industry, B2B, fast food, dessert, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, International Development,
    Date: 2016–07
  6. By: Cash, Sean B.; McAlister, Anna R.
    Abstract: We seek to examine how “adult-facing” food price interventions (such as junk food taxes) and warning labels may influence kids who are buying their own snacks. This work, conducted through a series of both laboratory and field experiments, also looks at the cognitive correlates of children’s market behavior. A proper understanding of the development and functioning of children as autonomous consumers has important implications for the role of labelling policies for good nutritional choices on children and the economy.
    Keywords: Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety,
    Date: 2017–01
  7. By: Mao Ning (China-Asean International College, Dhurakij Pundit University Bangkok, Thailand); Michael McAleer (Department of Quantitative Finance, National Tsing Hua University, Taiwan; Econometric Institute Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands;Department of Quantitative Economics, Complutense University of Madrid, Spain;)
    Abstract: This paper reviews the Thai national character according to Hofstede’s cultural dimension theory and Komin’s nine values cluster (Psychology of the Thai people), analyses the social hierarchy of Thai consumers according to the Luxury 4P Taxonomy (Han et al., 2010), integrates the Theory of Cultural Capital (Bourdieu, 1984), and expounds the features of social class. The global luxury fashion industry has grown significantly in recent years, but much of the research has been limited to conspicuous consumption and social identity. This paper involves religious beliefs that are argued to influence luxury purchasing motives. The purpose of the paper is to develop an analytical framework to aid in understanding luxury fashion consumption in a Buddhist country such as Thailand in order to inform luxury products vendors on how to improve their marketing strategies.
    Keywords: Luxury fashion consumption; Purchasing motives; Buddhist beliefs; Marketing strategies; Thailand.
    JEL: N35 Z12 Z13
    Date: 2017–01–23
  8. By: Zare, Samane; Zheng, Yuqing; Buck, Steven
    Abstract: Using Nielson retail scanner dataset and applying difference-in-difference approach and synthetic control method, we test whether consumers in Utah reduced beef purchases after 2009 Salmonella outbreak of ground beef products. The result of DID approach indicates that the Salmonella event reduced ground beef purchases in Utah by 17% in four weeks after the recall. Price elasticity of demand is also estimated to be -2.04; therefore, the reduction in ground beef purchases as a result of recall is comparable to almost 8.3% increase in the price of this product. Using the synthetic control method that allows us to use all of the control states to produce synthetic Utah, we found the effect of this event very small.
    Keywords: Recall, Salmonella, Treatment effect, Synthetic control, Agricultural and Food Policy, Consumer/Household Economics, Health Economics and Policy, Marketing,
    Date: 2017–01–18
  9. By: Dudley, William (Federal Reserve Bank of New York)
    Abstract: Remarks at the National Retail Federation Annual Convention, Jacob K. Javits Convention Center, New York City.
    Keywords: retail spending; housing equity; housing debt; collateral; Survey of Consumer Expectations
    Date: 2017–01–19
  10. By: McFadden, Brandon; Mullally, Conner
    Keywords: Demand and Price Analysis,
    Date: 2017–01–18
  11. By: Tatsuo Tanaka (Faculty of Economics, Keio University)
    Abstract: In this study, the effects of internet book piracy in the case of the Japanese comic book market were examined using direct measurement of product level piracy ratio and a massive deletion project as a natural experiment. Panel regression and difference-in-difference analysis consistently indicated that the effect of piracy is heterogeneous: piracy decreased the legitimate sales of ongoing comics, whereas the legitimate sales of completed comics increased. The latter result is interpreted as follows: piracy reminds consumers of past comics and stimulates sales in that market.
    Keywords: copyright, piracy, e-book, difference-in-difference, comic
    JEL: D12 L82 M3 O34
    Date: 2016–12–29

This nep-mkt issue is ©2017 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.