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on Marketing |
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Issue of 2017‒04‒30
seven papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Veronika Braciníková (Department of Business Economics and Management, School of Business Administration, Silesian University); Kateřina Matušínská (Department of Business Economics and Management, School of Business Administration, Silesian University) |
| Abstract: | In today's consumer times, marketing is not focused just on marketing issues, but it is part of wider context of enterprises and strategic, tactical and operational management of firms, companies, regions and other organizations. Marketing has basis in many models, starting with marketing mix. The traditional approach of seeing the marketing mix from the producer point of view has now changed to the customer´s perspective. There is a need of customer oriented marketing mix to satisfy the customers. So, the aim of this paper is to investigate impact of tactical marketing in the concept of 5C on consumer perceptions and behaviour. The analysis of primary marketing research data was based on the number of 412 respondents. The consumers were questioned about their behaviour within the topic of customer value, costs to the customer, convenience, communication and customer approach. When deciding about the selection of financial institutions and financial products as fundamental criteria are said to be costs to the customer - pricing policy, convenience - physical availability of branches and their physical evidence. |
| Keywords: | marketing, marketing mix “5C”, financial services, primary marketing research |
| JEL: | M31 |
| Date: | 2017–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:opa:wpaper:0039&r=mkt |
| By: | Matthew G. Nagler (Ph.D. Program in Economics, Graduate Center, and Department of Economics and Business, City College of New York) |
| Abstract: | I develop a new theory of persuasive advertising in which consumers rationally adjust to (i.e., improve their attitude toward) the products they choose and advertising facilitates adjustment. Advertisings price effects depend on whether marginal or inframarginal consumers are most heavily targeted, consistent with the literature. But they also depend on advertisings role as an overall adjustment intensifier, whence variation in the cost of adjustment with the strength of the consumers initial product preference determines the equilibrium price level. Whether too much or too little advertising is provided in equilibrium depends on the sign and size of advertisings price effect, the relative density of marginal consumers, and the relative extent to which advertisings adjustment cost reductions benefit marginal consumers. |
| Keywords: | Persuasive advertising, Hotelling model, consumer decision-making, pricing, welfare |
| JEL: | D03 D11 L10 M37 |
| Date: | 2017–03–09 |
| URL: | http://d.repec.org/n?u=RePEc:cgc:wpaper:014&r=mkt |
| By: | SCHOLZ Eva-Marie (Université catholique de Louvain, CORE, Belgium) |
| Abstract: | We study final good producers’ incentives and capabilities for implementing corporate social responsibility (CSR) activities with their input suppliers via supplier codes of conduct (SCoC). In this context, we first analyze the implicaitons of SCoC on the market equilibrium outcome in terms of the competition among final good producers as well as their supply relationships. We then derive the conditions under which SCoC are successfully implemented in the industry’s supply chains and clarify their implications for consumer welfare. In this context, we study endogenous as well as exogenous standards and further contrast two scenarios in which the input supplier either pricei discriminates or sets a uniform input price. In the case of endogenous standards, SCoC are set to maximize final good producers’ profits and, in equilibrium, are adopted in all supply chains. When standards are exogenous, either no, some or all final good producers successfully implement a SCoC. Here, the equilibrium may be characterized by an underprovision of SCoC, in the sense that not all final good producers that have incentives to adopt a SCoC also succeed to do so. In this context, we study the effectiveness and desirability of public and private initiatives that aim at overcoming this underprovision. In terms of the input suppplier’s pricing policy, we observe that input price discrimination may provide firms with greater incentivesi to adopt SCoC and, as a corollary, may maximize consumer surplus. |
| Keywords: | corporate social responsibility; Cournot oligopoly, supply chains |
| JEL: | D43 L13 L15 M14 |
| Date: | 2017–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2017005&r=mkt |
| By: | Haan, Marco A.; Moraga-González, José-Luis; Petrikaite, Vaiva |
| Abstract: | We present a framework to study directed consumer search. Firms sell products with two attributes. One is readily observable, the other only after visiting a firm. Search is directed as the order of search is influenced by the observable characteristics. Moreover, if prices are readily observable, firms also influence search direction by their choice of price. We show that when consumers observe prices before search, prices and profits are lower than when they do not. A lower price then not only retains more consumers, but is also more likely to attract them; the latter effect makes demand more elastic. When prices are observable before search, prices decrease in search costs. Consumer surplus initially increases in search costs, but may ultimately decrease. |
| Keywords: | differentiated products; ordered/directed search; price observability |
| JEL: | D83 L13 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11955&r=mkt |
| By: | Hanming Fang; Zenan Wu |
| Abstract: | We analyze how the life settlement market – the secondary market for life insurance – may affect consumer welfare in a dynamic equilibrium model of life insurance with one-sided commitment and overconfident policyholders. As in Daily et al. (2008) and Fang and Kung (2010), policyholders may lapse their life insurance policies when they lose their bequest motives; but in our model the policyholders may underestimate their probability of losing their bequest motive, or be overconfident about their future mortality risks. For the case of overconfidence with respect to bequest motives, we show that in the absence of life settlement overconfident consumers may buy “too much” reclassification risk insurance for later periods in the competitive equilibrium. In contrast, when consumers are overconfident about their future mortality rates in the sense that they put too high a subjective probability on the low-mortality state, the competitive equilibrium contract in the absence of life settlement exploits the consumer bias by offering them very high face amounts only in the low-mortality state. In both cases, life settlement market can impose a discipline on the extent to which overconfident consumers can be exploited by the primary insurers. We show that life settlement may increase the equilibrium consumer welfare of overconfident consumers when they are sufficiently vulnerable in the sense that they have a sufficiently large intertemporal elasticity of substitution of consumption. |
| JEL: | D03 D86 G22 L11 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23286&r=mkt |
| By: | Nicolas Petrovsky-Nadeau (Tepper School of Business); Etienne Wasmer (Département d'économie); Shutian Zeng |
| Abstract: | There is a renewed interest in macroeconomic theories of search frictions in the goods market that help solve quantitative puzzles on amplification and persistence of GDP, sales, inventory and advertisement. This requires a deeper understanding of the cyclical properties of the intensive margins of search in this market. Using the American Time Use Survey we construct an indicator of shopping time. It includes both searching and purchasing goods and is based on 25 time use categories (out of more than 400 categories). We find that average time spent shopping declined in the aggregate over the period 2008–2010 compared to 2005–2007. The decline was largest for the unemployed who went from spending more time shopping for goods than the employed to roughly the same, or even less, time. Cross-state and individual regressions indicate pro-cyclical consumer shopping time in the goods market. This evidence poses a challenge for models in which price comparisons are a driver of business cycles. |
| Keywords: | Goods market search; Time allocation; American time use survey; Business cycles |
| JEL: | D12 J22 |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/3bi2m7jdvh8ft9m3o2c19do3i8&r=mkt |
| By: | Spann, Martin (University of Munich); Stich, Lucas (University of Munich); Schmidt, Klaus M. (University of Munich) |
| Abstract: | We analyze \'Pay What You Want\' as a business model for Open Access publishing by discussing motives leading authors to make voluntary contributions, potential benefits for publishers and present results from a field experiment at one publisher. Data from the field experiment indicate authors\' willingness to voluntarily contribute. |
| Keywords: | Gold open access; article processing charges; customer-driven pricing; voluntary contributions; field experiment; |
| JEL: | M31 D03 L11 |
| Date: | 2017–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:10&r=mkt |