nep-mkt New Economics Papers
on Marketing
Issue of 2017‒10‒08
eighteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Umbrella Branding in Pharmaceutical Markets By Suppliet, Moritz
  2. "Digital Video as a Promotional Media and Brand Equity of a Product That has an Influence on Consumer Buying Interest (A Research of Social Media Active Users)" By Ayuningtyas Yuli Hapsari
  3. "Consumers’ Internal Meaning on Complementary Co-Branding Product by Using Osgood’s Theory of Semantic Differential" By Rachmat Kriyantono
  4. "The Effect of Brand Image, Price, and Brand Awareness on Brand Loyalty, The Rule of Customer Satisfaction as a Mediating Variable" By Hendra Pratama
  5. "Assessing Customer Emotion Product Relationship and Customer Retention Towards Halal Cosmetic Products " By Bee Li Yeo
  6. Freemium as Optimal Menu Pricing By Sato, Susumu
  7. "Greenwashing and Its Impact on Consumer Confidence – Case Study of Slovak Republic" By Jana Kliestikova
  8. Merger Effects with Product Complementarity: Evidence from Colombia’s Telecommunications By Juan Vélez
  9. "Antecedent and Consequence of Customer Company Identification toward Relationship Marketing at PDAM Tirta Khatulistiwa Pontianak, West Kalimantan Indonesia" By Nur Afifah
  10. A Large-Scale Field Experiment to Evaluate the Effectiveness of Paid Search Advertising By Coviello, Lorenzo; Gneezy, Uri; Götte, Lorenz
  11. "The Relationship Between Strategic Management, Employee Engagement on Customer Satisfaction and Customer Loyalty (Newest Empirical Approach 2013-2015): A Conceptual Model " By "Sudjatno "
  12. "How to Build Satisfaction and Customer Loyalty with a Focus On Complaints Handling (Review of the Scientific Literature)" By Agus Salim
  13. "The Effectiveness of Information Architecture Design towards Brand Equity" By Bunga Indah Bayunitri
  14. Green Marketing vs. Greenwashing. How to protect against Negative Impact of Greenwashing? By Margareta Nadanyiova
  15. "Innovation Capability and Customer Relationship Management in Building Competent Young Entrepreneurs" By Intan Widuri Sakti
  16. Top purchase intention priorities of Vietnamese LCC passengers: Expectations and satisfaction By Moslehpour, Massoud; Lin, Yi Hsin; Nguyen, Thi Le Huyen
  17. "Utilizing City Festival as an Event Marketing for Creative Industry Product (Case Study of Jember Fashion Carnaval)" By Lilik Farida
  18. "Factors Determining Pokémon Go Addiction in Malaysia " By Siti Aminah Abd Wahab1

  1. By: Suppliet, Moritz
    Abstract: Umbrella branding is a marketing practice whereby multi-product firms leverage their reputation across different product categories. This paper investigates how advertising in the market of over-the-counter (OTC) drugs affects the decision to buy prescription drugs from a promoted brand name. I exploit specific charac- teristics of market regulation in Germany to identify the effect of advertising and find positive effects of umbrella branding on sales of prescription drugs. Umbrella branding results in market expansion, particularly for generic firms which invest in OTC drug advertising. If the effect leads to more consumers of generic substitutes or to more patients in undertreated therapeutic areas, market expansion can have a positive effect on welfare.
    Keywords: umbrella branding; regulation; empirical io; pharmaceuticals ; marketing
    JEL: I3 L51 I1 M37 D22 C18
    Date: 2017
  2. By: Ayuningtyas Yuli Hapsari (Universitas Widyatama, Indonesia.)
    Abstract: "Objective – The research aims to test influence of promotion in social media and effect of brand equity on Consumer Buying Interest. Methodology/Technique – This research uses descriptive verification method that examines many as 115 respondents with 15-40 years of age category, because it is an age of active users of social media such as: Instagram, YouTube, Facebook, etc. This study also uses primary data is based on interviews during the pre-survey and distribute questionnaires. After that at the time of processing the data, this study using multiple regression analysis as a verification method to measure how much digital video as a media campaign on consumer buying interest as well as to determine how much influence the brand equity on consumer buying interest as active users of social media Findings – After passing the calculations using regression and t-test, promotion through social media consisting of online communities and forums, blogs and social networks has a very strong influence on consumer buying interest compared to brand equity. This can be enhanced by strengthening social networking through social media to increase product sales, many companies still believe that social media as a low-cost promotional media but can increase sales, more promotion in social media will increase brand equity in the minds of consumers, so that in the end will benefit both sides. Novelty – The research conducted in the context of Indonesia with original data on brand equity effect on confidence of consumers."
    Keywords: Digital Video; Promotion; Brand Equity; Consumer Buying Interest; Social Media.
    JEL: M31 M37
    Date: 2017–06–12
  3. By: Rachmat Kriyantono (School of Communication, Universitas Brawijaya, Indonesia)
    Abstract: "Objective – The research focuses on applying semantic meaning theory and semantic differential scale to marketing communication, particularly co-branding products strategy, as an external stimulus to the consumers. The research aims to evaluate a hypothesis that co-brands have different meaning from the consumers, however, the consumers would express more positive meaning –evaluation, activity, potency- toward a parent brand. Methodology – Although co-branding products have been in use for some time, there is surprisingly little quantitative empirical research on the subject. Findings – A survey on 100 respondents reveals that although co-brands –Avanza and Xenia- have identical products, they have different meaning from the consumers, and the consumers express more positive meaning –evaluation, activity, potency- toward Avanza rather than Xenia. Novelty – It contributes to develop the study of co-branding in Indonesia."
    Keywords: Co-branding Product, Indonesia, Marketing Communication, Osgood’s Semantic Differential, Semantic Meaning Theory.
    JEL: M31 M37
    Date: 2017–05–18
  4. By: Hendra Pratama (Master of Management, Universitas Atma Jaya Yogyakarta, Indonesia Author-2-Name: Budi Suprapto Author-2-Workplace-Name: Universitas Atma Jaya Yogyakarta, Indonesia)
    Abstract: "Objective – This study was conducted to determine the effect of brand image, price and awareness toward brand loyalty through customer satisfaction. In this study, 260 questionnaires were distributed to Samsung smartphone holders. Methodology/Technique – This research was conducted in Indonesia with the object of the research being the Samsung brands in relation to smartphones. The criteria of the respondents used was consumers who have used Samsung smartphones at least twice. In this study, as many as 260 questionnaires were distributed. Findings – The results use multiple linear regression analysis, indicating that brand image and brand awareness significantly effect brand loyalty, while price does not have a significant effect on brand loyalty. Further, brand image significantly effects customer satisfaction. The study also found that customer satisfaction mediates the effect of brand image on brand loyalty. Novelty – The study uses original data to identify influences on brand loyalty."
    Keywords: Brand Awareness; Brand Image; Brand Loyalty; Customer Satisfaction; Price.
    JEL: L11 L15 M30
    Date: 2017–04–12
  5. By: Bee Li Yeo (Faculty of Accountancy, Tunku Abdul Rahman University College, Malaysia Author-2-Name: Rozita Naina Mohamed Author-2-Workplace-Name: Faculty of Business and Management, Universiti Technologi Mara, Shah Alam, Selangor, Malaysia)
    Abstract: " Objective - Retailers today have acknowledged that incorporating great customer emotionproduct relationship can lead to total customer retention. In this paper an overview of the existing literature on customer emotion is provided before it is examined for the creation of customer emotion product relationship from a holistic perspective. Methodology/Technique - A conceptual model which discusses the determinants of customer emotion towards Halal cosmetic products is provided. This is then followed by taking an explicit dynamic view of the importance of the retail service quality and Halal advertising, factors that can influence customer emotion and customer retention. Data collection was based on 414 sets of questionnaires which were distributed to Malaysian consumers. The PLS-SEM analysis was used to identify the relationships between retail service quality and Halal advertising, customer emotion and customer retention. Findings – Relations were found between retail service quality, customer emotion product relationship and customer retention of Malaysian customers for Halal cosmetic products. Novelty - The findings of this study provided some insights to managers in future strategy planning by identifying the important factors affecting customer emotion product relationship and customer retention."
    Keywords: Halal Cosmetics; Retail Service Quality; Halal Advertising; Customer Emotion Product Relationship; Customer Retention
    JEL: M11 M31
    Date: 2016–12–21
  6. By: Sato, Susumu
    Abstract: In online contents markets, content providers collect revenues from both consumers and advertisers by segmenting consumers who are willing to avoid advertisements and who are not. To analyze such situations, I construct a model of menu pricing by advertising platforms in two-sided markets. I find that, under certain condition, although a monopolistic platform can choose any menu of price-advertisement pairs, the optimal menu consists of only two services: ad-supported basic service and ad-free premium service. In addition, if the willingness to pay of advertisers is sufficiently high, the basic service is offered for free. This menu pricing is well known as freemium. Furthermore, this binary structure remains to hold an equilibrium menu pricing even under duopoly.
    Keywords: Freemium, menu pricing, two-sided markets
    JEL: D42 D43 D85 L86 M21 M37
    Date: 2017–09–22
  7. By: Jana Kliestikova ("Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovak Republic" Author-2-Name: Margareta Nadanyiova Author-2-Workplace-Name: "Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovak Republic")
    Abstract: "Objective – This paper is focused on the topic of greenwashing and its impact on consumer confidence in specific conditions of Slovak republic. Nowadays, consumer confidence is mainly recognized as economic indicator measuring the interpretation of the current economic environment by consumers and their expectations for the future. In presented paper, we analyse greenwashing as a possible source of discontent. Greenwashing is a negative phenomenon of green marketing activities realised in the scope of corporate social responsibility. Methodology/Technique – First, green characteristics of Slovak consumers are analysed in context of Hofstede cultural dimensions of Slovak republic. Subsequently, there is evaluated realised questionnaire survey dedicated to the analysis of greenwashing impact on consumer confidence. Then, the relationship between greenwashing and consumer confidence in Slovak market, is detected. Findings – Results showed that attitude of authority has an impact on consumer confidence and the greenwashing has not got an impact on buying behavior of Slovak consumers. Novelty – It has a vital importance to analyze socio-cultural profile of the nation and in accordance with obtained results highlight the importance of environmental education of the society. "
    Keywords: Green Marketing; Greenwashing; Corporate Social Responsibility; Consumer Confidence.
    JEL: D11 E21 M31
    Date: 2017–03–05
  8. By: Juan Vélez (Banco de la República de Colombia)
    Abstract: Mergers of firms producing complementary products have ambiguous effects on consumer welfare. Consumers benefit if the firm, motivated by the internalized profits created by the complementarity, lowers prices. Consumers are hurt if the firm uses bundles to exert price discrimination, making standalone products more expensive. To assess which effect dominates, I use an administrative dataset, which records prices, market shares, and plan attributes of the universe of Colombia’s telecom carriers. I estimate a random coefficients discrete choice model of demand for bundled and standalone telecom products, in which the degree of substitutability or complementarity among products is an essential parameter of interest. I find that major telecom products display a mix of substitutability and complementarity, but in general hardwired and mobile services are complements. Counterfactual experiments using the estimated model indicate positive net effects of mergers with complements: despite a small increase in the price of standalone goods, consumer surplus increased by around 11 million dollars per quarter after the Claro merger. On the other hand I find evidence that mergers between ISPs and mobile carriers reduce the likelihood of poorer households adopting faster broadband. Classification JEL: L22, L13, G34, L96.
    Keywords: Market Structure, Imperfect Competition, Mergers, Telecommunications
    Date: 2017–10
  9. By: Nur Afifah (University of Tanjungpura, Indonesia Author-2-Name: Ilzar Daud Author-2-Workplace-Name: University of Tanjungpura, Indonesia)
    Abstract: "Objective –This study sets out to examine the conceptual framework and empirical test of CCI toward on the PDAM Tirta Khatulistiwa Pontianak, West Kalimantan Indonesia. It is also keen to explore how customers identify the company and what the antecedents and consequences of the identification which will give impact on customer relationships. This study contributes to the practical and scientific marketing that the identification of customers to the company can be used by company to make products that match customer expectations. Furthermore, the presence of CCI can be used by the company to establish marketing relationships with the customers. Methodology –This study is explanatory approach, 210 customers from three service areas were recruited as participants. The study used SEM inferential statistical approach where Smart PLS program was used as the analysis technique. Findings –Results of this study showed that: Customers of PDAM Tirta Khatulistiwa identify companies based on five dimensions, including; external company image, employee in services, company's products, characteristics of the company and the technology used by the company. In addition consequences of CCI is positive for relationship marketing. Finally, employee in services, products the company, and technology used by the company has contributed to the development of CCI. Novelty – The study put emphasize with its original data on building resource-based strategy (RBV)."
    Keywords: Identification; Social Identity Theory; Customer Company Identification; Relationship Marketing.
    JEL: L12 L21 M14
    Date: 2017–05–14
  10. By: Coviello, Lorenzo; Gneezy, Uri; Götte, Lorenz
    Abstract: Companies spend billions of dollars online for paid links to branded search terms. Measuring the effectiveness of this marketing spending is hard. Blake, Nosko and Tadelis (2015) ran an experiment with eBay, showing that when the company suspended paid search, most of the traffic still ended up on its website. Can findings from one of the largest companies in the world be generalized? We conducted a similar experiment with, arguably a more representative company, and found starkly different results. More than half of the paid traffic is lost when we shut off paid-links search. These results suggest money spent on search-engine marketing may be more effective than previously documented
    Keywords: field experiments; search-engine marketing
    JEL: C93 D90
    Date: 2017–09
  11. By: "Sudjatno " (Faculty of Economics and Business, Universitas Brawijaya, Indonesia)
    Abstract: "Objective – Customer satisfaction is the main goal of every company’s strategy for maintaining its global/local business. However, achieving Customer Satisfaction needs strategic management commitment which is related to how the shareholders and executives plan their business investment in employee engagement. The purpose of this study is to reveal the collaboration of the strategic management and employee engagement for achieving customer satisfaction. Methodology/Technique – The study employs the analytical method (literature study) to analyse data gained from literature review Findings – The relationship between strategic management, employee engagement and customer satisfaction is revealed. It is also noted that customer dimension, in the newest context, is goods or service value plus value added from positive emotion, expectation, switching cost. Novelty – This study explores employee engagement and customer satisfaction from the newest literature review combined with four strategic management’s newest book literature. "
    Keywords: Strategic Management, Employee Engagement, Customer Satisfaction
    JEL: M10 M12 M31
    Date: 2016–12–23
  12. By: Agus Salim (Faculty of Economics and Business, Brawijaya University, Indonesia Author-2-Name: Margono Setiawan Author-2-Workplace-Name: Faculty of Economics and Business Brawijaya University, Indonesia Author-3-Name: Rofiaty Author-3-Workplace-Name: Faculty of Economics and Business Brawijaya University, Indonesia Author-4-Name: Fatchur Rohman Author-4-Workplace-Name: Faculty of Economics and Business Brawijaya University, Indonesia)
    Abstract: "Objectives – The purpose of this study is to examine and explain the effect of bank service quality and the handling of customer complaints on customer loyalty in public sector banks in Jakarta. This bank has been the subject of several complaints to the Indonesian Consumers Foundation and the Financial Services Authority. Methodology/Technique – The variables in this study are: bank service quality 19 indicators, handling of customer complaints 4 indicators, 29 indicators of customer loyalty, and customer satisfaction 4 indicators. Findings – The research displays the proposed conceptual model, namely the main determining features of customer loyalty. Novelty – The study developed framework for future research."
    Keywords: "Bank Service Quality; Handling of Customer Complaints; Customer Satisfaction; Customer Loyalty; Public Sector Banks; Indonesia."
    JEL: D11 D21 G21
    Date: 2017–05–12
  13. By: Bunga Indah Bayunitri (Widyatama University, Bandung, Indonesia Author-2-Name: Savitri Putri Author-2-Workplace-Name: Widyatama University, Bandung, Indonesia)
    Abstract: "Objective – The paper aims to investigate the effectiveness of information architecture design towards brand equity in the case of GO-JEK company. Methodology/Technique – Types of research are a descriptive analysis and causal also measuring a conclusion by using a regression analysis and for hypothesis testing using t-test and F-test. The results of this research indicated that information architecture design is effective and also has a significant influenced on brand equity. Findings – The results show that design information architecture included in the criteria of ""Highly Effective"", this means that the customer respondents had a positive view of the effectiveness of design information GO-JEK architecture by using these indicators: The Principle of Object, Choice, Disclosure, Exemplars, Fronts-Doors, Multiple Classification, Focused Navigation, and Growth. Novelty – The study suggests that brand equity is influenced by the effectiveness of the design information architecture, then what should be done is the creation of effective information architecture."
    Keywords: "Application; Brand Equity; Effectiveness; Information Architecture Design; Online Service; Transportation. "
    JEL: M15 M31 M37
    Date: 2017–03–17
  14. By: Margareta Nadanyiova (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovak Republic Author-2-Name: Jana Kliestikova Author-2-Workplace-Name: Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovak Republic)
    Abstract: "Objective – Following paper deals with the essence of green marketing, green consumers and green strategies. It also defines greenwashing, different types of greenwashing, the seven sins of greenwashing, greenwashing index and negative impact of greenwashing. Based on this are outlined measures to protect against negative impact of greenwashing. Methodology/Technique – The study carried out with reviewing literature. Findings – The ways to avert the negative impacts of greenwashing includes: increasing awareness through media and education, elimination of greenwashing by companies, inclusion of greenwashing into the legislation, blacklisting of companies using greenwashing Novelty – The study suggests solutions for negative impacts of greenwashing."
    Keywords: Green Marketing; Greenwashing; Eco-friendly; Social Responsibility; Environment.
    JEL: D11 E21 M31
    Date: 2017–03–18
  15. By: Intan Widuri Sakti (Universitas Widyatama, Indonesia Author-2-Name: Gallang Perdana Dalimunthe Author-2-Workplace-Name: Universitas Pendidikan Indonesia)
    Abstract: "Objective – The study aims to learn effect of Innovation Capability and Customer Relationship Management on young entrepreneur’s competency. Methodology/Technique – Questionnaire used for the data collection in this study. The sampling method is probability sampling with simple random sampling technique. The population is all the Marketing students’ year 2012, and the calculated sampling is 100 respondents Findings – From the analysis and explanation using SEM, it is found that Innovation Capability and CRM have a big influence towards young entrepreneurs. Those variables also stimulate them to sharpen their business intuition. Novelty – The study proves importance of Innovation Capability and CRM on development of entrepreneurs."
    Keywords: Innovation Capability; CRM; Young Entrepreneurs; Structural Equation Modelling; SEM.
    JEL: L26 O32
    Date: 2017–03–20
  16. By: Moslehpour, Massoud; Lin, Yi Hsin; Nguyen, Thi Le Huyen
    Abstract: The mediating role of customer satisfaction has been widely discussed in the existing literature. However, to the best of our knowledge, there is still lack of studies focusing on the low-cost airline industry, especially in Vietnam. Therefore, this study aims at investigating factors that influence purchase intention and the mediating role of customer satisfaction in VietJet Air, in Vietnam. A quantitative research method is applied with the data being collected through an online questionnaire from three main regions in Vietnam: the North, the Center, and the South. The results indicate that customer satisfaction mediates the relationship between the independent variables (customer expectation/perceived value) and the dependent variable (purchase intention) in the case of VietJet Air in Vietnam. In general, this study not only enriches the existing literature but also might be a valuable reference to the VietJet Air’s and other similar Vietnamese low cost carrier managers to consider their strategic marketing plans.
    Keywords: purchase intention, Structural Equation Modeling (SEM), service quality, perceived value, customer expectation, customer satisfaction, low cost carrier, VietJet Air.
    JEL: M31
    Date: 2017–09–27
  17. By: Lilik Farida (University of Jember, Indonesia Author-2-Name: Nadia Azalia Putri Author-2-Workplace-Name: University of Jember, Indonesia Author-3-Name: Sudarsih Author-3-Workplace-Name: University of Jember, Indonesia)
    Abstract: "Objective – This study discusses the role of tourism event marketing in promoting creative industry products in a city by taking a case study in Jember district. Jember has third largest fashion carnival in the world named Jember Fashion Carnaval (JFC) which is held annually. JFC is capable of being a magnet of Jember tourism in recent years. That big potential of JFC can be utilized as a tourism event marketing. Hopefully, JFC is able to be a market for creative industries in Jember, given that the main problem of creative industries in Jember is related to marketing capability. JFC utilization as an event marketing requires a quadruple helix model approach, where local government, universities, creative industries, and society work together and synergically. Methodology – This study is designed using analytical descriptive approach. Findings – This study concluded that creating JFC as an event marketing in promoting creative industry product in Jember applies active synergy between government, academics, industries, and society. Government can act as creative industry promotor and supporter of facility and infrastructure; academics can contribute as source of knowledge, technology, and creative human resources; industries can develop their own enterprise using knowledge and experience transfer; and community can act as program partner related to JFC and creative industries. Novelty – The research based on the analytical descriptive approach suggests marketing challenge of creative industries with new product development and innovation."
    Keywords: Creative industry; Event marketing; JFC
    JEL: M31 M37
    Date: 2017–04–21
  18. By: Siti Aminah Abd Wahab1 ("Kulliyyah of Islamic Revealed Knowledge and Human Sciences (KIRKHS), International Islamic University Malaysia (IIUM), Malaysia." Author-2-Name: Nur Hafifah Jamalludin Author-2-Workplace-Name: "Kulliyyah of Islamic Revealed Knowledge and Human Sciences (KIRKHS), International Islamic University Malaysia (IIUM), Malaysia." Author-3-Name: Saodah Wok Author-3-Workplace-Name: "Kulliyyah of Islamic Revealed Knowledge and Human Sciences (KIRKHS), International Islamic University Malaysia (IIUM), Malaysia.")
    Abstract: "Objective – This study focuses on factors determining Pokémon Go addiction behaviour among players in Malaysia. Using the Personal Construct Theory (PCT), the relationship between perception of Pokémon Go players and their addiction behaviour toward the game is examined. The objectives of this study are (1) to identify the levels of perception and addiction behaviour of the Pokémon Go players in Malaysia; (2) to determine the relationship between perception and addiction behaviour of the Pokémon Go players; and (3) to investigate the moderating effects of age, gender and ethnicity on the relationship between perception and addiction behaviour of the Pokémon Go players. Methodology/Technique – The study employs the quantitative research design. The data are collected from 270 respondents using a self-administered questionnaire. Findings – The results show that even though the addiction behaviour of Pokémon Go players is low, the perception of Pokémon Go players towards the game is positive. Therefore, both addiction behaviour and perception are positively related. Age and gender are found to be moderate in the relationship between perception and addiction behaviour. With these results, the assumptions of PCT hold true. Novelty – The present study examines the relationship between perception of Pokémon Go players and their addiction behaviour toward the game. This research can provide insights regarding mobile gaming having similar features as the Pokémon Go"
    Keywords: "Gender; Malaysia; Mobile Games; Perception on Pokémon Go; Personal Construct Theory. "
    JEL: D11 L82 L86
    Date: 2017–04–18

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