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on Marketing |
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Issue of 2018‒03‒05
seven papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Susan Athey; David Blei; Robert Donnelly; Francisco Ruiz; Tobias Schmidt |
| Abstract: | This paper analyzes consumer choices over lunchtime restaurants using data from a sample of several thousand anonymous mobile phone users in the San Francisco Bay Area. The data is used to identify users' approximate typical morning location, as well as their choices of lunchtime restaurants. We build a model where restaurants have latent characteristics (whose distribution may depend on restaurant observables, such as star ratings, food category, and price range), each user has preferences for these latent characteristics, and these preferences are heterogeneous across users. Similarly, each item has latent characteristics that describe users' willingness to travel to the restaurant, and each user has individual-specific preferences for those latent characteristics. Thus, both users' willingness to travel and their base utility for each restaurant vary across user-restaurant pairs. We use a Bayesian approach to estimation. To make the estimation computationally feasible, we rely on variational inference to approximate the posterior distribution, as well as stochastic gradient descent as a computational approach. Our model performs better than more standard competing models such as multinomial logit and nested logit models, in part due to the personalization of the estimates. We analyze how consumers re-allocate their demand after a restaurant closes to nearby restaurants versus more distant restaurants with similar characteristics, and we compare our predictions to actual outcomes. Finally, we show how the model can be used to analyze counterfactual questions such as what type of restaurant would attract the most consumers in a given location. |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1801.07826&r=mkt |
| By: | Bertini, Marco; Buehler, Stefan; Halbheer, Daniel |
| Abstract: | This paper studies the impact of consumer resistance, which is triggered by deviations from a psychological reference point, on optimal pricing and cost communication. Assuming that consumers evaluate purchases not only in the material domain, we show that consumer resistance reduces the pricing power and profit. We also show that consumer resistance provides an incentive to engage in cost communication when consumers underestimate cost. While cheap communication does not affect behavior, persuasive communication may increase sales and profit. Finally, we show that a firm can benefit from engaging in operational transparency by revealing information about features of the production process. |
| Keywords: | Price Fairness, Cost Communication, Operational Transparency |
| JEL: | D9 L11 L21 M31 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:usg:econwp:2018:04&r=mkt |
| By: | Jia, Kai; Kenney, Martin; Mattila, Juri; Seppälä, Timo |
| Abstract: | Abstract The Chinese digital platform giants – Baidu, Alibaba and Tencent – have quickly risen to be amongst the most notable developers and users of artificial intelligence. One important catalyst for this development has been the so-called Platform Business Group (PBG) strategy used by Chinese digital platform firms. In this strategy a platform firm aims to develop powerful synergies by tightly linking together a number of different platforms it owns so as to offer multiple services to users under its umbrella. By applying the PBG strategy, Baidu, Alibaba, and Tencent are able to exploit enormous multi-faceted datasets on individuals for use in the development of artificial intelligence algorithms. As a result, the Chinese platform giants appear to be taking a somewhat different approach with the development and use of artificial intelligence than their Western counterparts. If the Chinese platform giants succeed in their efforts to expand into the global market, their business strategies will introduce a different threat to the conventional European industries from those challenges already presented by Apple, Amazon, Facebook, Google, and Microsoft. |
| Keywords: | Artificial Intelligence, Platforms, Platform Business Group strategy, Baidu, Alibaba, Tencent |
| JEL: | L8 L86 O3 O33 |
| Date: | 2018–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:81&r=mkt |
| By: | María Isabel Ayuda (Universidad de Zaragoza, Department of Economic Analysis, Faculty of Economics and Business Studies); Hugo Ferrer-Pérez (CREDA-UPC-IRTA, Edifici ESAB-PMT); Vicente Pinilla (Universidad de Zaragoza and Instituto Agroalimentario de Aragón -IA2- (Universidad de Zaragoza-CITA), Department of Applied Economics) |
| Abstract: | When studying the emergence of new global markets it is essential to consider how countries and companies compete to obtain advantageous positions. Our objective is to study how France obtained an initial leadership position in the new global wine market which it subsequently consolidated. We will also analyse the main determinants of its exporting success. In order to do this we have quantified its exports and examined its evolution and its principal export markets. We have also used a gravity model for both ordinary wine and high quality wine in order to establish the key variables that explain this evolution. The article highlights the great efforts made by the exporters to improve the quality of their products and increase their sales using modern marketing techniques. Our econometric results also show some significant differences between the determinants of exports for the two types of wine. However, the exports of both products suffered the strong impact of a series of major events, such as The First World War, the Russian Revolution, the Prohibition in the United States and the Great Depression. The case of wine shows that the collapse of the first globalisation was not the same for all types of product. |
| Keywords: | Globalisation waves, Wine trade, French wine exports |
| JEL: | F14 N53 N54 N70 Q17 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:hes:wpaper:0124&r=mkt |
| By: | Sharma, Ajay |
| Abstract: | This paper demonstrates that in a duopoly model with firms being concerned about profit as well as corporate social responsibility (CSR), the outcome of game may coincide with the Stackelberg outcome. We argue that owner of the firm may use CSR orientation as a strategy to become Stackelberg leader in the quantity competition game. |
| Keywords: | Stackelberg outcome; Corporate social responsibility; Cournot game; Duopoly; Non-profit orientation |
| JEL: | D21 D43 L10 L20 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:84326&r=mkt |
| By: | Hertzberg, Andrew (Federal Reserve Bank of Philadelphia); Liberman, Andres (New York University); Paravisini, Daniel (London School of Economics) |
| Abstract: | We exploit a natural experiment in the largest online consumer lending platform to provide the first evidence that loan terms, in particular maturity choice, can be used to screen borrowers based on their private information. We compare two groups of observationally equivalent borrowers who took identical unsecured 36-month loans; for only one of the groups, a 60-month loan was also available. When a long-maturity option is available, fewer borrowers take the short-term loan, and those who do default less. Additional findings suggest borrowers self-select on private information about their future ability to repay. |
| Keywords: | Screening; Adverse Selection; Loan Maturity; Consumer Credit |
| JEL: | D14 D82 |
| Date: | 2018–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:18-5&r=mkt |
| By: | Yannick Gabuthy; Eve-Angéline Lambert |
| Abstract: | Partant du constat d’un enseignement de l’économie à l’université fondé sur des méthodes principalement passives, cet article plaide en faveur d’une pédagogie active fondée sur les jeux pédagogiques expérimentaux avec une application à la thématique des structures de marché. Il fournit les clés pour l’utilisation de tels jeux en exposant les bases de l’économie expérimentale et les éléments pratiques de la mise en œuvre d’un jeu pédagogique. L’enseignement des trois principales structures de marché (concurrence pure et parfaite, monopole et oligopole) est proposé à travers la présentation d’un jeu détaillé par structure, complété par une revue de la littérature liée aux expériences pédagogiques existant sur chacune d’entre elles. |
| Keywords: | pédagogie active ; jeux pédagogiques ; structures de marché ; stratégies concurrentielles. |
| JEL: | A2 D4 L1 L4 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2018-05&r=mkt |