nep-mkt New Economics Papers
on Marketing
Issue of 2017‒03‒26
sixteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Multi-category competition and market power: a model of supermarket pricing By Øyvind Thomassen; Howard Smith; Stephan Seiler; Pasquale Schiraldi
  2. Rumour Sharing in the Marketplace: A Manifestation of Anxiety,Arousal, and Valence By Subin Sudhir; Anandakuttan B Unnithan
  3. Pricing for Online-Retailing:Exploring the influence of Price Dispersion and Price Distribution on Internal Reference Price (IRP) and Price-Attractiveness By Rajesh Kumar Sinha; Atanu Adhikari
  4. Zone Pricing in Retail Oligopoly By Brian Adams; Kevin R. Williams
  5. Adjacent Price Anchoring and Consumer’s Willingness to Pay: A Bayesian Approach By Atanu Adhikari
  6. Market Definition of Platform Markets By Dewenter, Ralf; Heimeshoff, Ulrich; Löw, Franziska
  7. Fairness in Participative Pricing: A New Way of Pricing in Hospitality Sector By Atanu Adhikari
  8. The Ideal Woman’s Reflection in the Distorted Mirror of Marketing By Ranjitha G P; Anandakuttan B Unnithan
  9. Wirkungen von Farben im Marketing By Nufer, Gerd; Wenk, Victoria
  10. Maximizing opportunities and minimizing risks for children online: the role of digital skills in emerging strategies of parental mediation By Sonia Livingstone; Kjartan Ólafsson; Ellen J. Helsper; Francisco Lupiáñez-Villanueva; Giuseppe A. Veltri; Frans Folkvord
  11. Branding Conceptualization and Research: Evolving Understanding and Emerging Research Areas By Ranjitha G. P; Joffi Thomas
  12. Marketing mit Instagram By Nufer, Gerd; Lenzen, Caroline Verena
  13. Ko-Entwicklungsprojekte im B2B: Eine Untersuchung von strategischen Einflussfaktoren sowie Auswirkungen auf die Häufigkeit von Markteinführungen By Schnellbächer, Armin
  14. Global Kids Online: researching children's rights globally in the digital age By Mariya Stoilova; Sonia Livingstone; Daniel Kardefelt-Winther
  16. E-Commerce in the lighting fixtures sector By Aurelio Volpe

  1. By: Øyvind Thomassen; Howard Smith; Stephan Seiler; Pasquale Schiraldi
    Abstract: In many competitive settings consumers buy multiple product categories, and some prefer to use a single firm, generating complementary cross-category price effects. To study pricing in supermarkets, an organizational form where these effects are internalized, we develop a multi-category multi-seller demand model and estimate it using UK consumer data. This class of model is used widely in theoretical analysis of retail pricing. We quantify crosscategory pricing effects and find that internalizing them substantially reduces market power. We find that consumers inclined to one-stop (rather than multi-stop) shopping have a greater pro-competitive impact because they generate relatively large cross-category effects
    JEL: L11 L13 L81
    Date: 2017
  2. By: Subin Sudhir (Institute for Financial Management and Research, Andhra Pradesh); Anandakuttan B Unnithan (Indian Institute of Management Kozhikode)
    Abstract: Rumours have always been an interesting aspect of investigation in interpersonal communication. Rumours can potentially affect perceptions about the product and brand images, rumours cause changes to the credibility of the brands, and affect customer loyalty. In recent years, there have been many rumours that have emerged in the marketplace and have created drastic effects on the marketing scenario. Nevertheless, despite the importance of rumours, there has been little attention paid to rumour research in the marketing context. This paper explores the effect of consumer’s state anxiety and arousal on the consumer’s intention to share a rumour. Furthermore, the paper explores the role of rumour valence in the aforementioned relationships. Following a quasi-experimental approach, the study collects data from 394 respondents and explores the role of anxiety, arousal, and rumour valence in rumour propagation. A Partial Least Squared based Structural Equation Modelling (PLS-SEM) is conducted to understand the role of the aforementioned variables. Results of the study indicate that both state anxiety and arousal have a significant positive relationship with the consumer’s intention to share the rumour. Furthermore, the results also indicate a moderating effect of rumour valence to these relationships; which signify higher propensity for the consumer to share negative rumours as compared to positive rumours.
    Keywords: Marketing, Rumour, Word of Mouth, Anxiety, Arousal.
    Date: 2016–03
  3. By: Rajesh Kumar Sinha (Indian Institute of Management Kozhikode); Atanu Adhikari (Indian Institute of Management Kozhikode)
    Abstract: A typical online retailer simultaneously offers a number of somewhat similar product choices with different prices at one place. Exposure to different prices at one place results in the occurrences of price dispersion and price distribution. We found little research related to price dispersion and price distribution in the marketing discipline. This paper is an attempt to enhance our understanding of influences of price dispersion and price distribution on buyers’ perceived overall price-attractiveness of a portfolio of somewhat similar product-choices. This study draws from reference dependent model of loss aversion to develop its theoretical framework. It also suggests that statistical mean of price distribution can provide better understanding of reference price in comparison to simple arithmetic mean and range, especially in the context of online retailing where great deal of price information is easily available at one place.
    Date: 2016–02
  4. By: Brian Adams (Bureau of Labor Statistics); Kevin R. Williams (Cowles Foundation, Yale University)
    Abstract: We quantify the welfare effects of zone pricing, or setting common prices across distinct markets, in retail oligopoly. Although monopolists can only increase profits by price discriminating, this need not be true when firms face competition. With novel data covering the retail home improvement industry, we find that Home Depot would benefit from finer pricing but that Lowe’s would prefer coarser pricing. The use of zone pricing softens competition in markets where firms compete, but it shields consumers from higher prices in markets where firms might otherwise exercise market power. Overall, zone pricing produces higher consumer surplus than finer pricing discrimination does.
    Keywords: Zone pricing, Market segmentation, Price discrimination in oligopoly, Micromarketing, Retailing
    JEL: C13 L61 L20 L67 L81
    Date: 2017–02
  5. By: Atanu Adhikari (Indian Institute of Management Kozhikode)
    Abstract: Considerable research on consumers' use of psychological reference points exists in pricing literature. Researchers examining brand choice have reasoned that reference point is based on past prices of the brand. We argue that consumers’ reference prices is motivated by the adjacent price of the product at point of display rather than any other reference prices in the context. This research studies the effect of adjacent price on consumers’ willingness to pay and purchase intention. This research considers consumer level heterogeneity since price sensitivity and consumers’ willingness to pay vary among individual. Hierarchical Bayes methodology is used to incorporate heterogeneity. This study shows significant difference in consumers’ willingness to pay when a medium priced brand is placed adjacent to a high priced brand as against adjacent to a moderately priced brand.
    Keywords: Brand-choice decision, Willingness to pay, internal reference price, Consumer heterogeneity, Hierarchical Bayes
    Date: 2016–12
  6. By: Dewenter, Ralf (Helmut Schmidt University, Hamburg); Heimeshoff, Ulrich (Düsseldorf Institute for Competition Economics); Löw, Franziska (Helmut Schmidt University, Hamburg)
    Abstract: Platform markets are characterized by the existence of indirect network effects that connect two or more market sides through a platform that internalizes these feedback effects. Conventional instruments of market definitions which consider price levels cannot easily applied in case of two-sided platform competition, as price structure of those markets are non-neutral. Instead of using prices, we use time series of quantities and simple correlation analysis to evaluate the substitutional relationship within two-sided media markets. As a benchmark model, we simulate a Cournot duopoly on order to calculate correlation coefficients for varying degrees of product differentiation and indirect network effects.
    Keywords: two-sided markets; market definition; printed media; network effects
    JEL: D43 L40 L82
    Date: 2017–03–14
  7. By: Atanu Adhikari (Indian Institute of Management Kozhikode)
    Abstract: While conventional pricing strategy involves sellers to decide price of a hospitality product, hospitality service providing companies carry the risk of capacity underutilization in many occasions when fixed costs are already incurred. Pay What You Think Fair (PWYTF) pricing mechanism motivates tourists to pay a fair price for unutilized capacity, thereby, increasing sales and profit for marketers. This study shows that PWYTF pricing mechanism with a concrete reference price of customer can generate significantly higher revenue and profit for a long period of time. We have conducted three experiments to show that PWYTF pricing strategy is a profitable and sustainable pricing solution for hospitality service providing companies to increase revenue during off-season as well as underutilization of hired capacity. This study opens a new avenue in pricing methods used in hospitality industry and contribute in significant way both in academic and practice.
    Keywords: Pay What You Think Fair, Willingness to buy, Willingness to pay, Participative pricing, Reference price,
    Date: 2016–12
  8. By: Ranjitha G P (Indian Institute of Management Kozhikode); Anandakuttan B Unnithan (Indian Institute of Management Kozhikode)
    Abstract: Gender roles and their stereotyped behavior is influenced by various factors, both external and internal during the course of an individual’s life. But, the identity of being an ideal woman, is blamed to be triggered majorly by marketing. It seems to create an identity benchmark in the society, generating compliance pressure in women to the identity standards. These efforts to adhere to the ideal woman benchmark is reflected in their consumption. But, do women really rejoice being the one, or do they regret for? To explore this, we conducted 20 in-depth interviews, which were initially informal, and further an incremental structured depth interviews the study identified the conditioning factors of identity construction process of being an ideal woman, perception of beauty and femininity, the conflict between relative and unique identities of women, women’s avoidance/need to be in relationships with men, and their transition from a private self to public self. The study also brings out the implications of being an ideal woman to marketing, consumer research and advertising.
    Keywords: Identity, Ideal Woman, Advertising, Marketing
    Date: 2017–01
  9. By: Nufer, Gerd; Wenk, Victoria
    Abstract: Farben umgeben den Menschen tagtäglich und beeinflussen unser Befinden und Verhalten - teils bewusst, teils unbewusst. Diese Tatsache veranlasst auch das Marketing, sich mit den Wirkungen von Farben auseinanderzusetzen, um diese gezielt anwenden zu können. Der richtige Einsatz von Farben im Marketing kann die (Werbe-)Botschaft und die gewünschte Wirkung einer Aktivität oder Marke unterstützen und zudem Aufmerksamkeit bei Konsumenten generieren. Die Erkenntnisse über Wirkungen von Farben im Marketing sind somit ent-scheidend für die Wahrnehmung der Konsumenten sowie für den Erfolg des Marketings eines Unternehmens.Im Rahmen dieser Arbeit werden zunächst Farben und deren Wirkungen im Hinblick auf die Farbsymbolik sowie Farbkombinationen und Farbtöne beschrieben. Im Anschluss wird auf den Einsatz von Farben im Marketing eingegangen. Anhand von Beispielen aus der Marketing-Praxis werden Farben als Element der Corporate Identity sowie der Marke vorgestellt und die Anwendung von Farben in der Werbung analysiert. Zur Verdeutlichung der Wirkung von Farben im Marketing wird ein Moodboard für einen Aktionsartikel des Discounters ALDI Süd entworfen. Abschließend werden die Erkenntnisse zusammengefasst und eine Handlungsempfehlung für den Einsatz von Farben im Marketing ausgesprochen.
    Date: 2017
  10. By: Sonia Livingstone; Kjartan Ólafsson; Ellen J. Helsper; Francisco Lupiáñez-Villanueva; Giuseppe A. Veltri; Frans Folkvord
    Abstract: As internet use becomes widespread at home, parents are trying to maximize their children’s online opportunities while also minimizing online risks. We surveyed parents of 6- to 14-year-olds in eight European countries (N=6,400). A factor analysis revealed two strategies. Enabling mediation is associated with increased online opportunities but also risks. This strategy incorporates safety efforts, responds to child agency and is employed when parent or child is relatively digitally skilled, so may not support harm. Restrictive mediation is associated with fewer online risks but at the cost of opportunities, reflecting policy advice that regards media use as primarily problematic. It is favoured when parent or child digital skills are lower, potentially keeping vulnerable children safe yet undermining their digital inclusion.
    Keywords: Parental mediation; internet; online risks; online opportunities; child agency; digital skills; policy guidance; parental style
    JEL: L91 L96
    Date: 2017–02
  11. By: Ranjitha G. P (Indian Institute of Management Kozhikode); Joffi Thomas (Indian Institute of Management Kozhikode)
    Abstract: Purpose –The paper aims to (i) facilitate an integrative understanding of the various brand conceptualizations in literature and (ii) reviews the empirical research in branding during the period from 2006 to 2014 , identifies emerging research areas and synthesizes the research findings to better comprehend the developments in branding research during the last decade. Design/methodology/approach – In the first part, various brand conceptualizations over time are categorized based on the underlying philosophical basis and consequently the predominant perspective employed namely the firm, customer and the emerging the stakeholder perspective to develop a holistic understanding of the evolution of branding . In the second part empirical research in branding published between 2006 and 2015 in top tier journals which included JM, JMR, JCR, JA, JAR, JR and JAMS were reviewed. Recent reviews in journals focused on branding especially Journal of Brand management as well as Journal of Product and Brand Management were further analyzed to better appreciate the developments in brand research. Findings/ Contribution – The study synthesizes multiple brand conceptualization to facilitate a holistic appreciation of developments in branding concept over time. The conceptualization of brand as culture, experience, co-creation are included under the stakeholder perspective. The study identifies corporate branding, brand community, experience, anthropomorphism, personality, co-creation, sustainable branding as the emerging research areas in branding and draws direction for future research. Research limitations/implications – This review is limited by the database, number of journals and keywords used for the search. Originality/ value - It advances the understanding of the evolution of brand conceptualizations and synthesizes branding research in the last decade to identify direction of future research.
    Keywords: Brand conceptualization, Branding, Review
    Date: 2016–07
  12. By: Nufer, Gerd; Lenzen, Caroline Verena
    Abstract: In einer reizüberfluteten Konsumgesellschaft gestaltet es sich nicht immer einfach, potentielle Kunden über den passenden Kanal zu erreichen. Für die Markenpositionierung müssen steigende Budgets in die Produktion von qualitativ hochwertigen Inhalten investiert werden, um durch den wachsenden digitalen Wettbewerb Authentizität und Relevanz für den Konsumenten zu wahren. Dabei ist der Fokus längst von der reinen Werbebotschaft zum "Storytel-ling" gewandert. Die Bedeutung der Erlebnisqualität einer Marke rückt in den Vordergrund, denn die Zielgruppe möchte nicht nur den objektiven Mehrwert erfahren, sondern zugleich eine spannende Geschichte, die sie auch selbst mit dem Produkt oder der Dienstleistung erleben können. Durch die Zunahme des mobilen Konsums von Content finden gerade soziale Netzwerke wie Instagram bei der Planung der Marketing-Aktivitäten eines Unternehmens steigende Beachtung. Im Textileinzelhandel wird diese Erkenntnis bereits seit längerer Zeit aktiv genutzt, nicht so im deutschen Lebensmitteleinzelhandel. Vor diesem Hintergrund stellt sich die Frage, ob eine ästhetische Inszenierung von Lebensmitteln auf Instagram überhaupt beim Rezipienten ankommt? Die Antwort ist eindeutig: Amerikanische Unternehmen wie Wholefoods machen es vor. Mit über 1,9 Millionen Abonnenten und fast 2.500 geposteten Beiträgen (Stand Februar 2017) erfreut sich das Unternehmensprofil des Lebensmitteleinzelhändlers aus Texas großer Beliebtheit. Marketing mit Instagram und Lebensmittel kann also erfolgreich verknüpft werden, aber wie? Dies soll im Rahmen der vorliegenden Arbeit untersucht werden.
    Date: 2017
  13. By: Schnellbächer, Armin
    Abstract: Innerhalb der letzten 15 Jahre kann ein Wandel bei Unternehmen festgestellt werden, sich bei der Entwicklung von innovativen Sachgütern und Dienstleistungen nicht mehr auf eine reaktive sondern auf eine proaktive Marktorientierung zu fokussieren. Vorausdenkende Unternehmen haben in diesem Zusammenhang verstärkt damit begonnen, Ko-Entwicklungsprojekte in ihr Geschäftsmodell zu integrieren. Aufgrund dieses Wandels, während der verschiedenen Phasen des Neuproduktentwicklungsprozesses gemeinsam mit Kunden zu interagieren, haben sich für Unternehmen neue Herausforderungen ergeben. So ist oftmals innerhalb von Unternehmen kein Wissen darüber vorhanden, wie eine effektive Steuerung und Förderung von Ko-Entwicklungsprojekten innerhalb des Unternehmens möglich ist, welche verschiedenen Rollen Kunden in diesen Projekten übernehmen können und innerhalb welcher Entwicklungsphasen sie an einer gemeinsamen Produktentwicklung beteiligt werden sollten. Die vorliegende Arbeit untersucht Ko-Entwicklungsprojekte im Hinblick auf mögliche strategische Einflussfaktoren, mit deren Hilfe es Top- und Senior Managern in einem Business-to-Business-Kontext ermöglicht wird Ko-Entwicklungsprojekte aus einer top-down Perspektive zu steuern. Auf Grundlage einer ausführlichen Literaturrecherche sowie Erkenntnissen aus der Innovations- und Führungsforschung wird im Rahmen der Arbeit argumentiert, dass eine innovationsorientierte Strategie sowie ein transaktionales und transformationales Führungsverhalten effektive Top- und Senior-Manager-Instrumente darstellen, innerhalb des Unternehmens eine generelle Offenheit und strategische Orientierung für die Innovationsentwicklung bereitzustellen. Weiterhin wird tiefgreifender auf mögliche Ausgangsgrößen von Ko-Entwicklungsprojekten eingegangen, mit deren Hilfe es möglich ist die Innovationsfähigkeit der ko-entwickelnden Unternehmen feinkörniger zu analysieren. Die Erkenntnisse der Arbeit basieren auf einer empirischen Studie, die in einer der weltweit führenden Zeitschriften im Bereich der Marketing- und Innovationsforschung, dem Journal of Product Innovation Management, veröffentlicht werden konnte. Der Datensatz wurde bei insgesamt 135 Top- und Senior Managern sowie 415 ihrer Mitarbeiter erhoben. Die Datengrundlage wird dazu genutzt, um neben den Haupteffekten der identifizierten strategischen Top- und Senior-Manager-Instrumente auf die Ko-Entwicklung auch deren Interaktionsbeziehung miteinander zu analysieren. Die Ergebnisse der hierarchischen Regressionsanalyse bestätigen die hypothetisierten positiven Wirkungsbeziehungen der innovationsorientierten Strategie sowie dem transformationalen Führungsverhalten mit Ko-Entwicklung. Ebenfalls deuten die Ergebnisse darauf hin, dass ein transformationales Führungsverhalten die Implementierung einer innovationsorientierten Strategie begünstigt, was für ein transaktionales Führungsverhalten nicht der Fall ist. Im Hinblick auf mögliche Ausgangsgrößen von Ko-Entwicklungsprojekten kann im Rahmen der empirischen Analyse eine umgekehrt U-förmige Wirkungsbeziehung zwischen der Ko-Entwicklung und der Häufigkeit von Markteinführungen eines Unternehmens festgestellt werden, was darauf hindeutet, dass Ko-Entwicklungsprojekte nicht prinzipiell in einem besonders hohen Ausmaß betrieben werden sollten. Abschließend werden anhand der gewonnenen empirischen Erkenntnisse konkrete Implikationen und Handlungsempfehlungen für die Wissenschaft und Unternehmenspraxis abgeleitet. Zudem wird näher auf mögliche Limitationen der Untersuchung sowie Anknüpfungspunkte für die zukünftige Forschung eingegangen.
    Date: 2017
  14. By: Mariya Stoilova; Sonia Livingstone; Daniel Kardefelt-Winther
    Abstract: Drawing on an ongoing international research project, Global Kids Online, this article examines the theoretical and methodological challenges of conducting global research on children’s rights in the digital age at a time of intense socio-technological change and contested policy development. Arguing in favour of critically rethinking existing research frameworks and measures for new circumstances, we report on the experience of designing a research toolkit and piloting this in four countries on four continents. We aim to generate national and cross-national insights that can benefit future researchers and research users concerned to build a robust evidence base to understand children’s rights in the digital age. It is hoped that such experiences will prompt wider lessons for the unfolding research and policy agenda
    Keywords: Child rights; comparative methods; contexts of childhood; digital age; evidence-based policy; global research; stakeholder partnership
    JEL: L91 L96
    Date: 2016–11–07
  15. By: Hemang Jauhari (Indian Institute of Management Lucknow); Manish Kumar (Indian Institute of Management Kozhikode); Shailendra Singh (Indian Institute of Management Lucknow)
    Abstract: Frontline service employees (FSEs) make or break a brand. Especially, in B2B services, their attitudes and behaviors are crucial in shaping valuable customer-related outcomes for a services firm/brand. Service firms are increasingly focusing on internal brand management to develop Brand Champions, who can live the brand and ensure its sustenance. However, the progress in this area has been marred due to infancy of research. In this paper, we address a major gap in this area pertaining to the conceptualization and measurement of behavior of Brand Champions, which is termed as Employee Brand Building Behavior (EBBB). In this study, we follow a five-step approach for developing and validating a scale of EBBB, using data from six samples of FSEs working in B2B services (N = 1886). First, using insights from literature and 25 in-depth interviews, we conceptualize EBBB and generate a pool of items. Second, we perform exploratory factor analysis for scale purification and examining the factor structure. Third, we check for the convergent and divergent validity of the EBBB dimensions, using confirmatory factor analysis. Fourth, we examine the scale for method effects. And finally, we test for the nomological validity of EBBB. This EBBB scale will be a great utility for practitioners and academicians, who wish to make contributions to the practice and theory of internal brand management.
    Keywords: Employee brand building behavior; employee behavior; scale development; frontline service employee; internal brand management; business services; Indian context
  16. By: Aurelio Volpe (CSIL Centre for Industrial Studies; CSIL Centre for Industrial Studies)
    Abstract: The report analyses the development of E-commerce sales in the lighting fixtures industry to nowadays and future prospects providing market size of lighting fixtures industry and E-commerce sales, by country/area (Europe, America, Asia) and by segment (Residential, Commercial, Industrial and Outdoor lighting). The Report highlights also a strategy for the E-commerce of lighting fixtures for the middle run, focusing on logistic platforms, price promise, investments from incubators, increasing use of smartphones, lack of infrastructure. E-commerce players. Short profiles of leading E-commerce players, sales data and market shares are included. Successful and unsuccessful stories. Around 200 useful contacts. Countries and geographical area considered: Europe (mainly Western Europe), America (mainly the United States), Asia (mainly China, India and Japan). The Report “E-commerce for the lighting fixtures industry†has been carried out using the following tools: field research including direct interviews with important manufacturers and distributors operating in the E-commerce business; desk analysis and comparison for a sample of over 200 companies using E-commerce (mainly US, Europe and China based); analysis of CSIL databases concerning lighting fixtures sector worldwide; processing of official statistics and various E-commerce related sources worldwide.
    JEL: L68 L81
    Date: 2017–03

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