nep-mkt New Economics Papers
on Marketing
Issue of 2019‒01‒14
six papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. Influence of Celebrity Credibility on Consumer Product Evaluation and Attitude Formation – A Conceptual Framework By Raksha Deshbhag
  2. Navigating new marketing technologies, channels and metrics By Petra Leonora Cvitanović
  3. Consumer perceptions of the commodification and related conservation of traditional indigenous Naxi forest products as credence goods (China) By Rokpelnis, Karlis; Ho, Peter; Cheng, Gong; Zhao, Heng
  4. A Twenty-Year Citation Analysis of the Knowledge Outflow and Inflow Patterns from the Journal of Product Innovation Management By Shikhar Sarin; Christophe Haon; Mustapha Belkhouja
  5. A Bayesian Gamma Frailty Model Using the Sum of Independent Random Variables: Application of the Estimation of an Interpurchase Timing Model By Ryosuke Igari; Takahiro Hoshino
  6. Rate Optimal Specification Test When the Number of Instruments is Large By Mitsukuni Nishida

  1. By: Raksha Deshbhag (School of Management, National Institute of Technology Karnataka, Mangalore- 575025, India Author-2-Name: Bijuna C Mohan Author-2-Workplace-Name: School of Management, National Institute of Technology Karnataka, Mangalore- 575025, India Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - Celebrity endorsement is considered to be one of the leading advertising strategies used by marketers to promote brands. Celebrities are the most powerful information sources which have the ability to form or change consumer attitudes. The purpose of the present study is to investigate the influence of celebrity credibility on consumer product evaluation, specifically in relation to attitude formation. Methodology/Technique - This paper presents the conceptual framework for understanding how the credibility of celebrities can influence the evaluation of products by consumers and consequently, the formation of consumer attitudes. The model is developed through an extensive review of the literature on celebrity credibility, consumer product evaluation (CPE) and attitude formation. Findings - The traits of celebrity credibility, particularly trustworthiness, expertise and attractiveness, have an important role to play in the evaluation of products by consumers. CPE occurs in a variety of ways and is influenced by, at least in part, celebrity credibility. Novelty - The model presented in this study endeavours to investigate these relationships to add to the existing body of knowledge.
    Keywords: Celebrity Endorsement; Celebrity Credibility; Consumer Product Evaluation; Consumer Perception; Attitude Formation.
    JEL: M10 M12 M19
    Date: 2018–12–09
  2. By: Petra Leonora Cvitanović
    Abstract: Modern technologies in all industries are drastically changing the behaviour of the consumers as well as their purchasing patterns. Companies are directing their marketing investment resources into mobile and online while the traditional marketing channels slowly become less effective because of the new generation of consumers and more effective targeting possibilities. New retail technologies offer many possibilities for reaching consumers directly through their mobile phones when they are in the store. A variety of marketing analytics tools helps the companies to measure marketing performance in both online and mobile channel. The goal of this paper is to analyse the advantages of today’s marketing technologies, marketing channels and marketing metrics and to identify some of the difficulties which companies face in navigating them. The conclusion is that companies which resist to use new technologies, channels and metrics are only hurting their business in the long run. Research methodology includes study of literature and scientific articles on digital marketing and researching YouTube videos on retail and mobile marketing.
    Keywords: new marketing technologies, multi-channel marketing, marketing analytics metrics, new generation of consumers, the future of marketing
    JEL: M30 M31
    Date: 2019–01–12
  3. By: Rokpelnis, Karlis; Ho, Peter; Cheng, Gong; Zhao, Heng
    Abstract: Commodification of Traditional Knowledge (TK) has been posited as a possible, although contested, alternative for the conservation of indigenous resources. Here we examine the case of the Chinese Naxi minority, with particular reference to the practice of sacred “Dongba” papermaking. The commodification of TK is a complex process with many pitfalls and trade-offs between the environment, economy, and social empowerment. In the process of commodification, consumers have arisen as an important force in environmental politics. To date, little is known about the way domestic tourists, the main consumer base of indigenous products, perceive Dongba paper. In this context, we examined their knowledge of Naxi culture, their willingness to pay for sustainably produced paper, and their perceptions of the product’s authenticity. This socio-economic study is based on a survey (n = 415) in rural Southwest China. We found a significant potential to market Dongba paper as a sustainable indigenous product. Although knowledge about Naxi culture was circumscribed (3% could identify the plant used for papermaking), the majority of respondents (55%) was willing to pay for TK protection. Respondents also preferred third-party labelling. We posit that TK products could be seen as credence goods, necessitating certification to ensure product authenticity and establish consumer trust. Markedly, the survey also found that attitudes as to who should provide third-party assurance are contradictory. The Chinese government was preferred as the strongest assurance of genuineness, but paradoxically, commanded the least trust in its ability to manage and fund the conservation of TK.
    Keywords: indigenous knowledge; forest products; China; Naxi minority; native and aboriginal peoples; certification; commodification; ethnic tourism
    JEL: R14 J01
    Date: 2018–10–20
  4. By: Shikhar Sarin (Boise State University); Christophe Haon (MKT - Marketing - Grenoble École de Management (GEM), IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Mustapha Belkhouja (Grenoble École de Management (GEM))
    Abstract: Since its inception in 1984, an emphasis on cross-functionality and interdisciplinary research was encrypted into the DNA of the Journal of Product and Innovation Management (JPIM). This essay explores the extent to which the journal has served as a platform for exchange of ideas between different disciplines by examining knowledge outflow and inflow with other scientific journals and disciplines over a 20-year period (1994-2013). Based on an extensive bibliometric database, we gain insights about how JPIM has evolved. We show that the journal has become a gatekeeper, importing knowledge mostly from the marketing and management literatures, and exporting knowledge to the technology and innovations management and the operations management domains.
    Date: 2019
  5. By: Ryosuke Igari (Faculty of Business Administration, Hosei University); Takahiro Hoshino (Faculty of Economics, Keio University)
    Abstract: In statistics, researchers have rigorously investigated the reproductive property, which maintains that the sum of independent random variables with the same distribution follows the same family of distributions. However, even if a distribution of the sum of random variables demonstrates the reproductive property, estimating parameters appropriately from only summed observations is difficult. This is because of identification problems when component random variables have different parameters. In this study, we develop a method to effectively estimate parameters from the sum of independent random variables with different parameters. In particular, we focus on the sum of Gamma random variables composed of two types of distributions. We generalize the result according to Moschopoulos(1985) to a proportional hazard model with covariates and a frailty model to capture individual heterogeneities. Additionally, to estimate each parameter from the sum of random variables, we incorporate auxiliary information using quasi-Bayesian methods, and we propose the estimation procedure by Markov chain Monte Carlo. We confirm the effectiveness of the proposed method through a simulation study and apply it to the interpurchase timing model in marketing.
    Keywords: Survival Analysis, Random Effects, Auxiliary Information, Quasi-Bayesian Inference, Markov Chain Monte Carlo
    JEL: C11 C41 M31
    Date: 2018–12–17
  6. By: Mitsukuni Nishida (The Johns Hopkins Carey Business School)
    Abstract: Despite a large literature that documents a market-share advantage for pioneering firms, entry-order effects on economic profits and their implications for marketing strategy are largely unknown due to limitations in accounting profits and costs. This paper empirically examines the entry-order effects on profit components: revenues, entry costs, expansion costs, and variable costs. Unlike conventional analyses, this paper leverages a structural approach that does not require information on accounting profits and costs. By assuming that forward-looking firms maximize economic profits under strategic interactions, the approach infers cost and revenue parameters such that these parameters justify the observed entry and expansion behaviors as equilibrium outcomes of a dynamic game. I apply the revealed-preference argument to the panel data set from the convenience-store industry in Japan on store counts and revenues for 47 geographic markets for years 1984 through 2010. Variation in entry order, store counts, and revenues across markets, firms, and years, together with the dynamic equilibrium model, allows researchers to uncover the entry-order effects on revenue and cost functions. I find whereas a firm earns 5.0% more revenues at the outlet level relative to the next entrant, the next entrant earns a reduction in variable costs per outlet and expansion costs per outlet by 5.7% and 15.9%, respectively. The difference in entry-order effects on profits accounts for 10.1% of the differences in total economic profits across two leading firms, 7-Eleven and LAWSON. Based on the interplay between competition, market growth, and geography, simulation analyses reveal that a firm may initially benefit from postponing its market-entry consideration, but the advantage could disappear in around 25 years. The benefits for a late entrant are larger if the market is growing and distant from the firm’s and competitor firms’ parent companies’ headquarters.
    Keywords: Dynamic Games; Structural Estimation; First-Mover Advantage; Pioneer Advantage; Firm Performance; Order-of-Entry; Convenience Store; Chain; Retailing
    Date: 2018–07

This nep-mkt issue is ©2019 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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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.