nep-mkt New Economics Papers
on Marketing
Issue of 2018‒04‒16
eighteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Relationship between dimensions of Brand Equity and 4Ps of Marketing Mix - Place, Product, Promotion, & Price: Coca Cola - Consumer Based Qualitative Survey By Arab, Nazanin
  2. Customer recognition and mobile geo-targeting By Baye, Irina; Reiz, Tim; Sapi, Geza
  3. The Effects of a Day Off from Retail Price Competition: Evidence on Consumer Behavior and Firm Performance in Gasoline Retailing. By Foros, Øystein; Nguyen-Ones, Mai; Frode, Steen
  4. Beliefs and Consumer Search in a Vertical Industry By Maarten Janssen; Sandro Shelegia
  5. Sustainable marketing communication strategies of Russian companies under the import substitution policy By Veronika Chernova; Alexander Zobov; Vasily Starostin; Galina Butkovskaya
  6. Consumers' Privacy Choices in the Era of Big Data By Prüfer, Jens; Dengler, Sebastian
  7. Improving online disclosures with behavioural insights By OECD
  8. The Effects of Mandatory Disclosure of Supermarket Prices By Itai Ater; Oren Rigbi
  9. The Benefit of Collective Reputation By Zvika Neemam; Aniko Ory; Jungju Yu
  10. Media, Fake News, and Debunking By Ngo Van Long; Martin Richardson; Frank Stähler
  11. The Differentiated Effect of Advertising on Readership: Evidence from a Two-Sided Market Approach By Ivaldi, Marc; Muller-Vibes, Catherine
  12. Grapevine or Informed Selection: Significance of Quality Attributes in India’s Emerging Wine Market By Deodhar, Satish Y.; Singh, Swati; Tank, Nikita
  13. The impact of stereotyped and non-stereotyped brand genders on cross-gender extension evaluations By Nathalie Veg-Sala
  14. When the arts inspire businesses: Museums as a heritage redefinition tool of brands By Damien Chaney; Mathilde Pulh; Rémi Mencarelli
  15. Marketing Communication By Goslar, Alex
  16. Monopsony in Online Labor Markets By Arindrajit Dube; Jeff Jacobs; Suresh Naidu; Siddharth Suri
  17. Input price discrimination with differentiated final products By Jong-Hee Hahn; Chan KIm
  18. Sales force in front of their poor customers: the case of retail banking By Berangere Brial; Evelyne Rousselet

  1. By: Arab, Nazanin
    Abstract: The relationship between dimensions of brand equity (brand association, brand awareness, perceived quality, and customer's loyalty) and 4Ps of marketing mix (product, place, price, and promotion) are examined in this paper. Cross sectional research design while following inductive approach I have explore the relationship between research variables from consumer's perspective. Total 129 participants took part in this survey. Respondents were identified and approached through convenience sampling technique. Survey questionnaire contained 16 total questions (4 demographic and 12 attitudinal and behavioural) questions with matrix based 5-Points LIKERT SCALE. Questionnaire was self designed and administered personally. Findings showed that there is significant relationship between dimensions of brand equity and 4Ps of marketing mix. The most significant dimension in terms of Coca Cola is brand association and least effective dimension has been customer's loyalty. Furthermore, most effective marketing mix tools for Coca Cola has been its product and pricing strategies while least effective has been promotional strategies. It is also found that despite being brand image with high dependability and reliability image, there is low customer's loyalty towards Coca Cola. The paper is significant because it explores the relationship from consumer's perspective. Further, it examines the association between all dimensions of brand equity and considered marketing mix feature from qualitative perspective. The limitations of research are discussed at the end of research paper.
    Keywords: Brand Awareness, Brand Equity, Customer Loyalty, Marketing Mix, Perceived Quality
    JEL: D19 L11 L19 L21 L66 Y1
    Date: 2018–01–15
  2. By: Baye, Irina; Reiz, Tim; Sapi, Geza
    Abstract: We focus on four important features of mobile targeting. First, consumers' real-time locations are known to sellers. Second, location is not the only factor determining how responsive consumers are to discounts. Other factors such as age, income and occupation play a role, which are imperfectly observable to marketers. Third, sellers may infer consumer responsiveness from their past purchases. Fourth, firms can deliver personalized offers to consumers through mobile devices based on both their real-time locations and previous purchase behavior. We derive conditions that determine how combining behavior-based marketing with mobile geo-targeting influences profits and welfare in a competitive environment. Our setting nests some earlier models of behavior-based price discrimination as special cases and yields additional insights. For instance, different from previous studies we show that pro.t and welfare effects of behavioral targeting may depend on firm discount factor.
    Keywords: Mobile Marketing,Location Targeting,Price Discrimination,Customer Data
    JEL: D43 L13 L15 M37
    Date: 2018
  3. By: Foros, Øystein (NHH, Department of Business and Management Science); Nguyen-Ones, Mai (NHH, Department of Business and Management Science); Frode, Steen (Dept. of Economics, Norwegian School of Economics and Business Administration)
    Abstract: First, we analyze how regular days off from competition and a time-dependent price pattern affect firm performance. Second, we examine the effects on firms' profitability from consumers’ changing search- and timing behavior. We use microdata from gasoline retailing in Norway. Since 2004, firms have practiced an industry-wide day off from competition, starting on Mondays at noon, by increasing prices to a common level given by the recommended prices (decided and published in advance). In turn, a foreseeable low-price window is open before every restoration. During the data period, we observe an additional weekly restoration on Thursdays at noon. The additional day off from competition increases firm performance. As expected, a conventional price search of where to buy reduces firms’ profitability. In contrast, consumers who are aware of the cycle and spend effort on when to buy have a positive impact on firms’ profitability. If consumers spend effort on when to buy, they attempt to tank during low price windows. By its very nature, this shrink consumers’ ability to compare prices at several outlets. Consequently, more attention to when to buy may soften price competition.
    Keywords: Pricing cycles; Firm performance; Gasoline markets
    JEL: D22 L25 L42 L81
    Date: 2017–11–16
  4. By: Maarten Janssen; Sandro Shelegia
    Abstract: This paper studies vertical relations in a search market. As the wholesale arrangement between a manufacturer and its retailers is typically unobserved by consumers, their beliefs about who is to be blamed for a price deviation play a crucial role in determining wholesale and retail prices. The common assumption in the consumer search literature is that consumers exclusively blame an individual retailer for a price deviation. We show that in the vertical relations context, predictions based on this assumption are not robust in the sense that if consumers assign just a small probability to the event that the upstream manufacturer is responsible for the deviation, equilibrium predictions are qualitatively different. For the robust beliefs, the vertical model can explain a variety of observations, such as retail price rigidity (or, alternatively, low cost pass-through), non-monotonicity of retail prices in search costs, and (seemingly) collusive retail behavior. The model can be used to study a monopoly online platform that sells access to final consumers.
    Keywords: vertical relations, consumer search, Double Marginalization, product differentiation, price rigidities
    JEL: D40 D83 L13
    Date: 2018–03
  5. By: Veronika Chernova (Peoples’ Friendship University of Russia); Alexander Zobov (Peoples’ Friendship University of Russia); Vasily Starostin (State University of Management); Galina Butkovskaya (State University of Management)
    Abstract: The sanction standoff between Russia and the West opened up new opportunities for Russian food manufacturers. A new import substitution policy declared by the government restricted the access of the leading foreign countries to the market and unlocked a potential for internal development. Russian producers spotted new niches in the food market. There exist numerous obstacles to assimilating new market prospects: organizational (logistics, infrastructure, etc.), investment, legal, economic, etc. The paper underlines that the problem of enhancing the effectiveness of food companies' marketing policy in the context of import substitution is among the most formidable challenges. The article generalizes the problems of implementing the marketing policy of Russian enterprises. It reviews the core findings of the research studies on exploring consumers' attitude towards Russian and foreign-made food products. The author formulates recommendations about executing sustainable marketing communication strategies of Russian companies under import substitution.
    Keywords: consumer goods,food products,marketing communications,import substitution
    Date: 2017–12–29
  6. By: Prüfer, Jens (Tilburg University, Center For Economic Research); Dengler, Sebastian (Tilburg University, Center For Economic Research)
    Abstract: Recent progress in information technologies provides sellers with detailed knowledge about consumers' preferences, approaching perfect price discrimination in the limit. We construct a model where consumers with less strategic sophistication than the seller's pricing algorithm face a trade-off when buying. They choose between a direct, transaction cost-free sales channel and a privacy-protecting, but costly, anonymous channel. We show that the anonymous channel is used even in the absence of an explicit taste for privacy if consumers are not too strategically sophisticated. This provides a micro-foundation for consumers' privacy choices. Some consumers benefit but others suffer from their anonymization.
    Keywords: privacy; big data; perfect price discrimination; level-k thinking
    JEL: L11 D11 D83 D01 L86
    Date: 2018
  7. By: OECD
    Abstract: This report looks at how behavioural insights can be used to improve online information disclosures for consumers. The report is the latest contribution to work by the OECD’s Committee on Consumer Policy on improving consumer policy with behavioural insights. Behavioural insights incorporate findings from economics, psychology, neuroscience and marketing to better understand how individuals and businesses actually behave in the marketplace. While the role of information disclosure policies is clear in empowering consumers to make informed decisions when shopping online, findings from behavioural insights raise questions about the usefulness of certain forms of information disclosure. This report looks at these concerns and the subsequent policy implications.
    Date: 2018–04–12
  8. By: Itai Ater; Oren Rigbi
    Abstract: We study how mandatory online disclosure of supermarket prices affects prices and price dispersion in brick-and-mortar stores. Using data collected before and after a transparency regulation went into effect in the Israeli food retail market, multiple complementary control groups and relying on a differences-in-differences research design, we document a sharp decline in price dispersion and a 4% to 5% drop in prices following the transparency regulation. The price drop varied across stores and products; it was smaller among private-label products than among branded products, and it was smaller among stores and products that were likely to have been associated with more intense search patterns even before prices became transparent (e.g., products in heavy-discount chains; popular products; products that meet stringent kosher requirements). Finally, we show that prices declined as more consumers used price-comparison websites, and we highlight the role of media coverage in encouraging retailers to set lower prices.
    Keywords: price transparency, information, mandatory disclosure, retail food, supermarkets
    JEL: D83 L81 L66
    Date: 2018
  9. By: Zvika Neemam (Tel Aviv University); Aniko Ory (Cowles Foundation, Yale University); Jungju Yu (Yale School of Management)
    Abstract: We study a model of reputation with two long-lived ?rms that sell their products under a collective brand or under two di?erent individual brands. Firms face a moral hazard problem because their quality investments are not observed. Investments can only be sustained due to reputational concerns. In a collective brand, consumers cannot distinguish between the two ?rms. We show that in the long run, this makes it harder to establish a good reputation because of the incentives to free-ride on the other ?rm’s investments. But in the short run it mitigates the temptation to milk good reputation. Consequently, a collective brand can provide stronger incentives to invest in quality if ?rms are su?iciently impatient. We explain the connection between incentives and the type of industry in which the ?rms operate as captured by the underlying signal structure and consumers’ prior beliefs. We discuss the relation to country-of-origin labelling, agricultural cooperatives, and other collective brands.
    Keywords: Branding, Collective reputation, Commitment, Country of origin
    JEL: C70 D21 D40 D70 L10 L50
    Date: 2016–12
  10. By: Ngo Van Long; Martin Richardson; Frank Stähler
    Abstract: We construct a Hotelling-type model of two media providers, each of whom can issue fake and/or real news and each of whom can invest in the debunking of their rival’s fake news. The model assumes that consumers have an innate preference for one provider or the other and value real news. However, that valuation varies according to their bias favoring one provider or the other. We demonstrate a unique subgame perfect Nash equilibrium in which only one firm issues fake news and we show, in this setting, that increased polarization of consumers - represented by a wider distribution - increases the prevalence of both fake news and debunking expenditures and is welfare reducing. We also show, inter alia, that a stronger preference by consumers for their preferred provider lowers both fake news and debunking. Finally, we compare monopoly and duopoly market structures in terms of “fake news” provision and show that a public news provider can be welfare improving.
    Keywords: fake news, media, debunking
    JEL: D21 L15 L82
    Date: 2018
  11. By: Ivaldi, Marc; Muller-Vibes, Catherine
    Abstract: In this paper, we empirically analyze the French print media market by modeling the existence of a reciprocal effect between the size of the readership and the amount of advertising. For this two-sided platform, we measure the cross-effects of advertising on the readership and periodical popularity on advertising. By estimating a structural model of simultaneous demand equations, we quantify some crucial elements in designing pricing and product-differentiating strategies. We measure the impact of advertising on reader demand and find in the data that it has opposite effects depending on whether the publication presents informational or entertaining content. By taking into account the market interactions, we compute price and advertising elasticities. Our results show that advertisers targeting a specific category of the audience would choose its corresponding periodicals and would trade off the size of the readership for these periodicals and the advertising insert price changes. Also, advertising campaigns aimed at reaching a broader spectrum of the population should focus on popular titles and on titles for which demand is inelastic to ensure a more consistent impact of the campaign. Finally, for magazines with low price demand elasticity on the readers’ side, editors’ revenues could be improved by increasing prices. These combined effects should allow a publisher to generate positive margins from both sides of the market, for certain content categories.
    Keywords: Media; Advertising; Discrete Choice Model; Two-Sided Markets
    JEL: C33 L11 L52 L82
    Date: 2018–03
  12. By: Deodhar, Satish Y.; Singh, Swati; Tank, Nikita
    Abstract: Indian wine market is in a nascent state as compared to its counterparts in Europe, America and Asia. However, with rapid growth in GDP and consequent changes in lifestyle, the absolute size of the market is growing rapidly. The market size was about Rs. 3 billion in 2008 and by 2015 it had already reached Rs. 6 billion. Wine is a highly differentiated product, characterized by the presence of multifarious quality attributes. In this context, it becomes imperative to know the premiums attached to different wines and their attributes, resulting from selections made by producers and consumers. We undertake a hedonic price analysis of retail wine prices and their quality attributes. Results indicate that Ceteris Paribus, there is no premium attached to red wines in general over white wines. Reserve wines and a select few red wines do earn a premium though. Substantive premium is earned by foreign brands. Wines with higher alcohol content, club-shaped bottles, and cork closures carry a premium over other types of wines. Results may give cues both to producers and consumers on what new wines they could produce or consume.
    Date: 2018–03–30
  13. By: Nathalie Veg-Sala (Institut d'Administration des Entreprises (IAE) - Paris, CEROS - Centre d'Etudes et de Recherches sur les Organisations et la Stratégie - UPN - Université Paris Nanterre)
    Abstract: This research proposes to introduce the concept of stereotype to definebrand gender and to make a new contribution on the analysis of cross-gender extension evaluation. The results of an experiment, made on two product categories and considering the two possible directions of these extensions – from men to women and from women to men – reveal that the perceived fit between the cross-gender extension and the brand is more positive when the brand gender is non-stereotyped and, surprisingly, when the brand extends from the female to the male market. The interaction effect suggests also that the impact of the cross-gender extension direction is more important in the case of a brand with a non-stereotyped gender. Those results challenge previous research. A concluding discussion lays out recommendations for business.
    Keywords: stereotypes,gender,Cross-gender extension,perceived fit,direction of cross-gender extension
    Date: 2017–12
  14. By: Damien Chaney (Département de marketing [ESC Troyes] - Groupe ESC Troyes en Champagne); Mathilde Pulh (CReGO - Centre de Recherche en Gestion des Organisations - UFC - Université de Franche-Comté - UB - Université de Bourgogne); Rémi Mencarelli (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: While the literature has mainly considered brand museums as communication tools or complex retail environments, this article analyses them through a heritage framework and suggests that brands can use heritage technologies of the arts for their own purposes. The case study of the brand museum of the Laughing Cow highlights the heritage technologies the brand uses to endorse two heritage roles: an inter-generational memory role based on the transmission of the brand's history and a community representation role through spaces and objects. As a consequence, this research sheds light on how brands can come to be accepted as heritage objects. By using heritage technologies within a museum, brands can capture heritage functions, and thus no longer fully rests in a market logic: the brand becomes a sacred and inalienable common good.
    Keywords: brand museum,heritage,brands,memory,transmission,flagship stores
    Date: 2018
  15. By: Goslar, Alex
    Abstract: Empirical research in the USA and the Asia Pacific suggests that the occasions of miscommunication far outnumber the occasions where communication has been interpreted in the way that it was intended. Though the data is vastly different from region to region and particularly when cross-continental communication has taken place, there are very few cases where attendees to a marketing conference were concluding similar outcomes. It appears that the communication gap is particularly wide when the cultural differences between the communicator and the recipients of the communication, are from the different cultural background. For example delegates from the USA attending a marketing conference in Japan and vice versa.
    Keywords: Marketing; Marketing Communication; Communication
    JEL: M3 M31 M37
    Date: 2016–10–04
  16. By: Arindrajit Dube; Jeff Jacobs; Suresh Naidu; Siddharth Suri
    Abstract: On-demand labor platforms make up a large part of the “gig economy.” We quantify the extent of monopsony power in one of the largest on-demand labor platforms, Amazon Mechanical Turk (MTurk), by measuring the elasticity of labor supply facing the requester (employer) using both observational and experimental variation in wages. We isolate plausibly exogenous variation in rewards using a double-machine-learning estimator applied to a large dataset of scraped MTurk tasks. We also re-analyze data from 5 MTurk experiments that randomized payments to obtain corresponding experimental estimates. Both approaches yield uniformly low labor supply elasticities, around 0.1, with little heterogeneity.
    JEL: J01 J42
    Date: 2018–03
  17. By: Jong-Hee Hahn (School of Economics, Yonsei University); Chan KIm (School of Economics, Yonsei University)
    Abstract: This paper examines the welfare effects of third-degree price discrimination by an input monopolist when downstream producers compete with differentiated goods and consumers have heterogeneous preferences for the products. The input monopolist's optimal pricing follows the standard inverse-elasticity rule, but its implication for welfare differs from the traditional analysis with homogeneous goods. Price discrimination can improve welfare even without an increase in total output or opening of new market. Also, the effect of price discrimination on consumer surplus differs from the one obtained for the case of price discrimination in final-goods markets. Our results shed new light on public policy regarding input price discrimination. We can no longer claim that price discrimination is harmful to society because it does not increase or reduces total output. Moreover, different policy responses are required depending on welfare standard. Simple policy guidelines are proposed that can be used in actual antitrust cases.
    Keywords: third-degree price discrimination, intermediate goods market, product differentiation, competition policy, antitrust JEL Classification: L11
    Date: 2018–04
  18. By: Berangere Brial (IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12); Evelyne Rousselet (IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)
    Date: 2017–11–23

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