nep-mkt New Economics Papers
on Marketing
Issue of 2018‒01‒22
six papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Evaluation of best price clauses in online hotel booking By Hunold, Matthias; Kesler, Reinhold; Laitenberger, Ulrich; Schlütter, Frank
  2. One Markup to Rule Them All: Taxation by Liquor Pricing Regulation By Eugenio J. Miravete; Katja Seim; Jeff Thurk
  3. Does Knowledge Management Influence the Customer's Satisfaction and Intention to Quit? Mediating Role of Customer Relationship Management By Adeel Mehmood; Muhammad Yousaf Zain Ul Abedin
  4. Effects of globalizing a consumer-friendly firm into an asymmetric mixed duopoly By Leal, Mariel; Garcia, Arturo; Lee, Sang-Ho
  5. How Firms Grow By Yaniv Yedid-Levi; Stefanie Haller; Doireann Fitzgerald
  6. Firm Dynamics and Pricing under Customer Capital Accumulation By Pau Roldan; Sophia Gilbukh

  1. By: Hunold, Matthias; Kesler, Reinhold; Laitenberger, Ulrich; Schlütter, Frank
    Abstract: We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, hotels publish their offers more often at when it does not use the narrow BPC, and also tend to promote the direct online channel more actively. Moreover, the abolition of's narrow BPC is associated with the direct channel of chain hotels having the strictly lowest price more often.
    Keywords: best price clauses,hotel booking,MFN,OTA,vertical restraints
    JEL: D40 L42 L81
    Date: 2017
  2. By: Eugenio J. Miravete; Katja Seim; Jeff Thurk
    Abstract: Government often chooses simple rules to regulate industry even when firms and consumers are heterogeneous. We evaluate the implications of this practice in the context of alcohol pricing where the regulator uses a single markup rule that does not vary across products. We estimate an equilibrium model of wholesale pricing and retail demand for horizontally differentiated spirits that allows for heterogeneity in consumer preferences based on observable demographics. We show that the single markup increases market power among upstream firms, particularly small firms whose portfolios are better positioned to take advantage of the policy. For consumers, the single markup acts as a progressive tax by overpricing products favored by the rich. It also decreases aggregate consumer welfare though 16.7% of consumers are better off under the policy. These consumers tend to be older, less wealthy or educated, and minorities. Simple policies therefore generate significant cross-subsidies and may be an effective tool for government to garner favor of key constituencies.
    JEL: D42 D63 H23 L43 L66
    Date: 2017–12
  3. By: Adeel Mehmood (Department of Management Sciences, University of Sargodha Gujranwala campus); Muhammad Yousaf Zain Ul Abedin
    Abstract: Satisfied customers are worthy assets for any organization. This study helps in understanding how important is to retain and enlarge these assets by minimizing the intention to quit and maximizing the satisfaction of customers. This research explores the importance of knowledge management and customer relationship management in order to retain advantageous and long-term bonds with customers in hotel industry. The purpose of this study is to examine the effect of knowledge management on customers' satisfaction and intention to quit by concentrating on the mediating role of customer relationship management. Data were collected by applying simple random sampling from employees and customers of hotels in Gujranwala. Results indicated that knowledge management has significant and positive relationships with customers' satisfaction. Moreover, knowledge management is negatively and significantly related to intention to quit. Additionally, customer relationship management also significantly mediates the relationship between knowledge management and customers' satisfaction & intention to quit.
    Keywords: Intention to Quit,Knowledge Management,Customer Relationship Management,Customers Satisfaction
    Date: 2017–10–01
  4. By: Leal, Mariel; Garcia, Arturo; Lee, Sang-Ho
    Abstract: We study the effects of uniting two separated markets, each monopolized by a producer, into a single globalized duopoly market. When one of the firms is consumer-friendly before and after globalization, we examine certain conditions under which globalization turns out to be beneficial. Consumers in the local market which the consumer-friendly firm is from may have their surplus reduced under certain conditions. We also find conditions under which welfare of one market or the other can be reduced, even that of both simultaneously. If these conditions were met, it would be better, in a globalizing context, that the firm is friendly only with the consumers of its original market and not with those of the global market.
    Keywords: globalization, consumer-friendly firm, technical advantage, asymmetric mixed duopoly
    JEL: L12 L31
    Date: 2017–12–28
  5. By: Yaniv Yedid-Levi (The University of British Columbia); Stefanie Haller (University College Dublin); Doireann Fitzgerald (Federal Reserve Bank of Minneapolis)
    Abstract: We document a new set of facts about firm dynamics, separating true dynamics from the appearance of dynamics driven by selection. Conditional on survival, total revenue and the number of markets a firm participates in grow with age. However TFP grows very slowly. Meanwhile, there is no statistically significant relationship between prices and age. We use these facts to motivate a model of firm dynamics, where firms differ in their efficiency, and face frictions in entering and expanding sales in markets. This allows us to address the following question: Do successful firms grow because they produce more efficiently, or because they sell more at a given level of efficiency?
    Date: 2017
  6. By: Pau Roldan (New York University); Sophia Gilbukh (NYU Stern)
    Abstract: What is the relationship between the rate at which firms accumulate their stock of demand over time and the prices that they set for their products? This paper analyzes the implications of cus- tomer capital accumulation for firms’ pricing behavior and firm dynamics. We build an analytically tractable directed search model of the product market in which firms are ex-post heterogeneous in their customer base and commit to the prices they post. The model features dynamic contracts with endogenous customer reallocation, endogenous entry and exit of firms, and allows for an exact characterization of the firm distribution. Price rigidity at the firm level emerges as an equilibrium outcome, and there is price dispersion in the cross-section because firms of different sizes use differ- ent pricing strategies to strike a balance between attracting new customers and retaining incumbent ones. We show that our mechanism can generate realistic firm dynamics, a right-skewed firm size distribution, and size- and age-dependent markups which are in line with the data.
    Date: 2017

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