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on Marketing |
| By: | Ai Hisano (Harvard Business School, General Management Unit) |
| Abstract: | This working paper examines the remarkable growth of wine consumption in the United States since the 1960s. The country is now the largest wine consumer in the world, exceeding the wine-producing European countries such as France and Italy, which had long dominated world markets. The paper identifies the late 1960s and 1970s as the major turning point by analyzing the role of businesses in reinventing the image of wine from a cheap and very alcoholic beverage to a sophisticated natural product, and a fine accompaniment for gourmet food. By creating wine as a symbol of social status, the reimagined wine industry became a reinforcer of social and class divisions in the United States. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:17-099&r=mkt |
| By: | Erin S. Garnett; Stephanie R. Gretsch; Clair Null; Christine L. Moe |
| Abstract: | Consumer responses to food product recalls have been documented, but there is little information on how consumers respond to illnesses or outbreaks associated with food service facilities. |
| Keywords: | Consumer survey, Foodborne outbreaks, Norovirus |
| JEL: | I0 I1 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:6ebb0f0f1aa5460899fa3cebc58c09c6&r=mkt |
| By: | Chongwoo Choe; Stephen King; Noriaki Matsushima |
| Abstract: | We study a two-period model of spatial competition with two symmetric firms where firms learn customers’ preferences from the first-period purchase, which they use for personalized pricing in the second period. With product choice exogenously fixed with maximal differentiation, we show that there exist two asymmetric equilibria and customer switching is only from one firm to the other unless firms discount future too much. Firms are worse off with such personalized pricing than when they use pricing at higher levels of aggregation. When product choice is also made optimally, there continue to exist two asymmetric equilibria given sufficiently small discounting, none of which features maximal differentiation. More customer information hurts firms, and more so when they make both product choice and pricing decisions. |
| Keywords: | Spatial competition, behavior-based price discrimination, personalized pricing, endogenous product choice |
| JEL: | D43 L13 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2017-07&r=mkt |
| By: | Matthias Greiff (Justus-Liebig-University Giessen); Henrik Egbert (Anhalt University of Applied Sciences) |
| Abstract: | This paper introduces the Pay-What-You-Want game which represents the interaction between a buyer and a seller in a Pay-What-You-Want (PWYW) situation. The PWYW game embeds the dictator game and the trust game as subgames. This allows us to use previous experimental studies with the dictator and the trust game to identify three factors that can influence the success of PWYW pricing in business practice: (i) social context, (ii) social information, and (iii) deservingness. Only few cases of PWYW pricing for a longer period of time have been documented. By addressing repeated games, we isolate two additional factors which are likely to contribute to successful implementations of PWYW as a long term pricing strategy. These are (iv) communication and (v) the reduction of goal conflicts. The central contribution of this study is an attempt to bridge the gap between laboratory experiments and the research on PWYW pricing, which relies largely on evidence from the field. By reviewing the relevant experiments, this study identifies factors crucial for the success of PWYW pricing and provides guidance to developing long-term applications of PWYW pricing. |
| Keywords: | Pay-What-You-Want, PWYW Game, pricing, dictator game, trust game |
| JEL: | C90 D12 D49 M21 M30 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:sko:wpaper:bep-2017-05&r=mkt |
| By: | Hviid, Morten; Izquierdo Sanchez, Sofia; Jacques, Sabine |
| Abstract: | Prior to digitalisation, the vertical structure of the market for recorded music could be described as a large number of artists [composers, lyricists and musicians] supplying creative expressions to a small number of larger record labels and publishers who funded, produced, and marketed the resulting recorded music to subsequently sell these works to consumers through a fragmented retail sector. We argue that digitalisation has led to a new structure in which the retail segment has also become concentrated. Such a structure, with successive oligopolistic segments, can lead to higher consumer prices through double marginalisation. We further question whether a combination of disintermediation of the record labels function combined with “self-publishing” by artists, will lead to the demise of powerful firms in the record label segment, thus shifting market power from the record label and publisher segment to the retail segment, rather than increasing the number of segments with market power. |
| Keywords: | Streaming; self publishing; music industry |
| JEL: | K0 K2 O34 |
| Date: | 2017–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:79018&r=mkt |
| By: | Cheng, Si; Massa, Massimo; Zhang, Hong |
| Abstract: | We study how the globalization of finance may unintendedly reduce market efficiency through low-skilled financial institutions. Particularly, it may allow these companies to achieve product differentiation by launching new products for “marketing†purposes rather than for the goal of improving investor welfare or market efficiency. Using a complete sample of global mutual funds, we find that low-skill fund companies are more likely to launch new funds that track less-explored foreign equity market indices. However, these new funds typically deliver lower returns and lower diversification benefits. The associated cross-border capital flows reduce price efficiency and liquidity. |
| Keywords: | Globalization of finance; Cross-border capital flows; Mutual funds; Market efficiency |
| JEL: | F36 G15 G23 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11990&r=mkt |