nep-mkt New Economics Papers
on Marketing
Issue of 2018‒11‒26
four papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. Grape Supply and Implicit Prices for Wine Quality Attributes By Schamel, G.
  2. The Poking Effect: Price Changes, Information, and Inertia in the Market for Mobile Subscriptions By Reme, Bjørn-Atle; Lie-Røhr, Helene; Sæthre, Morten
  3. Consumer Willingness to Pay Price Premium for Credence Attributes of Livestock Products A Meta-Analysis method By Yang, W.; Renwich, A.
  4. Assessing the effects of Sello Manos Campesinas (Peasant-Hands Seal) on smallholders participating in the programme By Kobrich, C.; Bravo , F.; Alvial, N.

  1. By: Schamel, G.
    Abstract: We analyze how grape supply may determine implicit prices for organic wine and regional denominations. We analyze three grape supply chains and the related wine quality they produce: cooperatives, own-growing and mixed-sourcing. Cooperatives have their grapes supplied by their member growers. Own-growers are making wine exclusively from their own-grown grapes. Mixed-sourcing describes wineries that use own-grown grapes and contract-grapes from independent growers. Cooperative producers face the challenge to raise grape and subsequent wine quality (e.g. setting appropriate incentives that induce their members to grow high quality grapes through vineyard management and grape pricing schemes). We analyze data on retail prices, wine quality evaluations, winery reputation indicators, organic production and regional denomination rules (DOC, IGT). Using a hedonic model, we show that wines from cooperatives may command a price (or reputation) premium relative to wines from private producers and we observe specialized grape supply chains with price premiums for DOC wine from cooperatives, IGT denominated wine from own-growing wineries and organic wine from mixed sourcing and own-growing producers. We confirm that cooperatives may gain a price premium in the market. Moreover, we show that the price premium for organic wine may depend on specialized grape supply chains. Acknowledgement : Special thanks are due to the authors of l Espresso Wine Guide and the Chamber of Commerce of the Province of Bozen-Bolzano for providing access to the data analyzed in this paper.
    Keywords: Demand and Price Analysis
    Date: 2018–07
  2. By: Reme, Bjørn-Atle (Telenor Research); Lie-Røhr, Helene (Telenor Research); Sæthre, Morten (Dept. of Economics, Norwegian School of Economics and Business Administration)
    Abstract: We study consumer inertia in the mobile subscription market, focusing on the decision of whether to switch to a competing provider. To identify the extent of inertia, we exploit price changes faced by 270,000 consumers of a large telecom provider. We document that the propensity to switch provider after the price change increases among consumers whose costs decrease with the new prices. Furthermore, we find that the increase is largest right after consumers are informed of the upcoming change—during the two months prior to the tariff change—as opposed to when the price change is implemented. From these findings, we infer what we call a poking effect; the information of an upcoming price change causes consumers to engage in searches for alternative offers, leading to increased switching. We supplement the analysis with a survey and find indications that the poking effect is due to consumer inattention. To separate the effect on attention from the reaction to the actual price change, we estimate a model of consumer choice with limited attention. We find that when consumers are poked, it increases the share of consumers becoming attentive to competing offers. This leads many consumers to switch providers earlier than they would otherwise, explaining why they leave even though their terms with their current company improve.
    Keywords: Consumer Inertia; Inattention; Consumer Behavior; Telecom; Churn
    JEL: M00
    Date: 2018–11–21
  3. By: Yang, W.; Renwich, A.
    Abstract: Livestock production is increasingly being regarded as resource-intensive and is attracting concerns about animal welfare and environmental sustainability. As a result, consumer awareness of these issues has led to an increasing demand for products with high quality attributes that cannot be directly experienced or identified, namely credence attributes (CAs). To our knowledge, so far no study has systematically identified the value of price premium associated with credence attributes of livestock products. In an effort to understand this issue this study conducted a meta-analysis to examine consumers WTP for different credence attributes of livestock products based on a systematic review of relevant studies. Meta-regression models are used to control for the heterogeneity of WTP estimates and investigate factors that affect the estimation of WTP. There were 555 estimates derived from 94 papers reporting WTP. Meta-regression results established the presence of systematic WTP variation associated with types of products, CAs, and locations, yet also indicated that WTP is subject to systematic variation associated with study methodology. While results are promising with regard to the ability of research to provide insight regarding WTP for CAs, they also suggest that researchers should consider the potential for methodological effects when conducting empirical WTP analysis Acknowledgement :
    Keywords: Consumer/Household Economics
    Date: 2018–07
  4. By: Kobrich, C.; Bravo , F.; Alvial, N.
    Abstract: The Sello Manos Campesinas programme aims to make peasant farming visible by certifying four attributes that consumers recognise as proper from peasant farmers: i.e. originated from peasant farmers, artisanal production, healthy, and fostering local development. Two years after beginning operations, we collected information from focus groups in regards to the motivations of farmers for participating in the programme. With this information, we constructed a survey to evaluate those motivations and assess the effects and changes brought about by the seal on farmers businesses. This survey was applied to 100 farmers throughout the country. We identified three motivations for applying to be certified under the programme: improving sales, valuing the product and the production process, and receiving a personal recognition. However, for all practical purposes, their motivations were mainly for trading: raising product value, access new sales channels, and selling more products at a better price. Our results show that farmers actually use and promote the seal and that sales figures are promising, in spite of the scarce promotion of this seal to consumers. This situation could be explained as this seal makes customers trust the product, hence transforming their purchasing intentions. Acknowledgement : This research was financed by FIDA MERCOSUR CLAEH programme.
    Keywords: Consumer/Household Economics
    Date: 2018–07

This nep-mkt issue is ©2018 by Marco Novarese. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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