nep-mkt New Economics Papers
on Marketing
Issue of 2017‒04‒23
five papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Rational and Emotional Messages Amid Online News Exposure of the Brand By Boonchai Hongcharu
  2. Rebranding Syngrou: Changing the image of Syngrou Avenue, in Greece By Metaxas, Theodore; Liapis, Alexandros
  3. Growing Markets through Business Training for Female Entrepreneurs: A Market-Level Randomized Experiment in Kenya By McKenzie, David; Puerto, Olga Susana
  4. How Exporters Grow By Doireann Fitzgerald; Stefanie Haller; Yaniv Yedid-Levi
  5. Channels of Impact: User Reviews when Quality is Dynamic and Managers Respond By Judith A. Chevalier; Yaniv Dover; Dina Mayzlin

  1. By: Boonchai Hongcharu (NIDA Business School)
    Abstract: Customers receive a large amount of information from today?s online world. It has been increasingly difficult for the marketers to monitor and respond to different types of messages affecting their brand. At the same time, marketers also need to communicate with customers through various types of messages. It is interesting to understand the roles of message appeals have while customers expose to different types of online news about the brand. We conduct an experiment with 240 randomly selected subjects on a 2 message appeals (rational and emotion) X 4 online news exposure (no exposure, positive news exposure, negative news exposure and both positive and negative news exposure) factorial design to explore their effects on five aspects of consumer responses: attitude toward the ad, credibility, persuasion, attitude toward the brand and purchase intention. The results revealed both message appeals and online news exposure significantly affect attitudes toward the ad and the brand. Message appeals have a significant effect on persuasion and only the interactions of both factors affect purchase intention. Discussion and implications on the findings will be provided.
    Keywords: message appeals, rational message, emotional message, online news exposure, positive news, negative news, consumer response,
    JEL: M30 M31 M37
  2. By: Metaxas, Theodore; Liapis, Alexandros
    Abstract: The evolution of cities during the 20th century decisively influenced by events that changed the way cities worked in the past. These rapid changes in the economy of cities, urban governance and mode of international urban network, intensified competition and highlighted the importance of image as a decisive factor for the development of cities and their inhabitants. In this context, place marketing emerged. Cities and regions use place marketing and place branding strategies in order to improve their image and attract investment, residents and visitors. Culture, in all of its manifestations, (cultural flagships projects, cultural clusters, cultural routes, special events and festivals) plays a significant role in place marketing and branding strategies. This paper examines the case of Syngrou Avenue, in Athens – Greece, by developing a pilot place branding plan. The new cultural foundations of the National Museum of Contemporary Art (EMST) and the Stavros Niarchos Foundation Cultural Center (SNFCC), in conjunction with the existing cultural infrastructure around Syngrou and the plans for the redevelopment of the Faliron Bay, creating the need for a strategically planned image management in order to respond to these new conditions prevailing. The main purpose of the study was to investigate the image and identifying the characteristics that could compose the new competitive identity, the new «brand» of Syngrou. For the purpose of the study apart from the secondary literature review, a primary field research was also conducted. Survey findings were analyzed using the statistical SPSS software package.
    Keywords: Place branding, Syngroy Avenue, Image, Cultural Cluster, Field Survey
    JEL: R58
    Date: 2017
  3. By: McKenzie, David (World Bank); Puerto, Olga Susana (Youth Employment Network (UN, ILO, World Bank))
    Abstract: A common concern with efforts to directly help some small businesses to grow is that their growth comes at the expense of their unassisted competitors. We test this possibility using a two-stage randomized experiment in Kenya which randomizes business training at the market level, and then within markets to selected businesses. Three years after training, the treated businesses are selling more, earn higher profits, and their owners have higher well-being. There is no evidence of negative spillovers on the competing businesses, and the markets as a whole appear to have grown in terms of number of customers and sales volumes. This market growth appears to come from enhanced customer service and new product introduction, generating more customers and more sales from existing customers. As a result, business growth in underdeveloped markets is possible without taking sales away from non-treated businesses.
    Keywords: business training, spillovers, microenterprise, market development
    JEL: O12 O17 J16 L26
    Date: 2017–03
  4. By: Doireann Fitzgerald; Stefanie Haller; Yaniv Yedid-Levi
    Abstract: We document how export quantities and prices evolve after entry to a market. Controlling for marginal cost, and taking account of selection on idiosyncratic demand, there are economically and statistically significant dynamics of quantities, but no dynamics of prices. To match these facts, we estimate a model where firms invest in customer base through non-price actions (e.g. marketing and advertising), and learn gradually about their idiosyncratic demand. The model matches quantity, price and exit moments. Parameter estimates imply costs of adjusting investment in customer base, and slow learning about demand, both of which generate sluggish responses of sales to shocks.
    Keywords: Exporter dynamics; Customer base; Learning
    JEL: F1 L11
    Date: 2017–01
  5. By: Judith A. Chevalier; Yaniv Dover; Dina Mayzlin
    Abstract: We examine the effect of managerial response on consumer voice in a dynamic quality environment. We argue that, in this environment, the consumer is motivated to write reviews by, in addition to altruism, the possibility that the reviews will impact the quality of the service directly. We examine this empirically in a scenario in which reviewers receive a credible signal that the service provider is listening. Specifically, we examine the managerial response feature allowed by many review platforms. We hypothesize that managerial responses will stimulate reviewing activity and that, because managers respond more and in more detail to negative reviews, we hypothesize that managerial responses will particularly stimulate negative reviewing activity. Using a multiple-differences specification, we show that reviewing activity and particularly negative reviewing is indeed stimulated by managerial response. Our specification exploits comparison of the same hotel immediately before and after response initiation and compares a given hotels reviewing activity on sites with review response initiation to sites that do not allow managerial response.
    JEL: L15 L86 M31
    Date: 2017–03

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