nep-mkt New Economics Papers
on Marketing
Issue of 2019‒03‒11
five papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. The dark side of salesperson brand identification in the luxury sector: When brand orientation generates management issues and negative customer perception By Michaela Merk; Géraldine Michel
  2. Credence goods markets and the informational value of new media: A natural field experiment By Rudolf Kerschbamer; Daniel Neururer; Matthias Sutter
  3. Heterogeneous Consumer Preference for Seafood Sustainability in Japan By Wakamatsu, Hiroki
  4. Integration of smallholder producers in high value chains: a marketing systems perspective By Grwambi, B.
  5. Lessons from nearly a century of the brand management system By Isabelle Aimé; Fabienne Berger-Remy; Marie-Eve Laporte

  1. By: Michaela Merk (SKEMA Business School); Géraldine Michel (IAE Paris - Sorbonne Business School)
    Abstract: While there is extensive literature on the positive impact of salesperson brand identification, we have little understanding about its negative effects in the luxury context where brand aura can generate deviant behavior. To investigate the negative consequences of salesperson brand identification in the luxury sector, we conducted qualitative studies, including observations and interviews with retail managers, salespeople and consumers. On the one hand and according to managers, salespeople with brand identification present high resistance to change and generate brand distortion. On the other hand, salespeople with brand identification, in particular those with low self-confidence or low brand seniority, develop a selling approach with strong brand centricity but little customer orientation. Regarding consumers, salespeople with brand identification may generate negative perceptions, particularly for those customers with brand and product expertise and those engaging in exclusive brand relationships.
    Keywords: Salespeople,Luxury retail,Brand identification,Brand orientation,Salesforce management,Luxury consumption
    Date: 2019–02
  2. By: Rudolf Kerschbamer; Daniel Neururer; Matthias Sutter
    Abstract: Credence goods markets are characterized by pronounced informational asymmetries between consumers and expert sellers. As a consequence, consumers are often exploited and market efficiency is threatened. However, in the digital age, it has become easy and cheap for consumers to self-diagnose their needs using specialized webpages or to access other consumers' reviews on social media platforms in search for trustworthy sellers. We present a natural field experiment that examines the causal effect of information acquisition from new media on the level of sellers' price charges for computer repairs. We find that even a correct self-diagnosis of a consumer about the appropriate repair does not reduce prices, and that an incorrect diagnosis more than doubles them. Internet ratings of repair shops are a good predictor of prices. However, the predictive valued of reviews depends on whether they are judged as reliable or not. For reviews recommended by the platform Yelp we find that good ratings are associated with lower prices and bad ratings with higher prices, while non-recommended reviews have a clearly misleading effect, because non-recommended positive ratings increase the price.
    Keywords: credence goods, fraud, information acquisition, internet, field experiment
    JEL: C93 D82
    Date: 2019–02
  3. By: Wakamatsu, Hiroki
    Abstract: This study estimates Japanese consumers’ willingness to pay (WTP) for several components of seafood sustainability. A choice experiment via a web survey is conducted among Japanese seafood consumers. In order to estimate WTP, a latent class model is employed to treat heterogeneity of consumer preference in addition to a basic conditional logit model. The latent class model resulted in separating consumers into two characteristic groups: nature-oriented and human-oriented groups. Neither group was found to be willing to pay for seafood sustainability even though they are somewhat concerned about seafood sustainability. Specifically, the nature-oriented group, which comprised 51% of our consumer sample, negatively evaluated fisheries management and preservation of tradition and culture but highly evaluated the environment and ecosystems. Meanwhile, the human-oriented group, which comprised 49% of our consumer sample, positively evaluated fisheries management and regionality, but negatively evaluated the environment and ecosystems. The differences between the groups are unrelated to education or income, but are related to seafood expense, age, family structure, and knowledge of sustainability.
    Keywords: best–worst scaling, choice experiment, consumer preference, seafood sustainability
    JEL: Q01 Q22 Q51
    Date: 2019–02–26
  4. By: Grwambi, B.
    Abstract: Changes in the structure of value chains have opened up lucrative opportunities for smallholder producers to increase income as a means to improve their livelihoods. Yet, recent literature argues that smallholder producers are better off in their current markets than when integrated in high value chains on disadvantageous terms. This chapter studies the terms of integration of smallholder producers in high value chains from a marketing systems perspective. Results indicate that because of uncertainty regarding reliability of supplies from smallholder producers, exporters adopt quasi-hierarchical forms of governance to monitor supplies. To enhance production, exporters offer advanced payments or loans and disbursements to smallholder producers and use smallholders� harvest as collateral. In return, smallholder producers offer assortments of deciduous fruit to exporters. To coordinate delivery of fruit to overseas markets, exporters estimate yields and inform markets; they monitor packing, liaise with cold stores, make transport and shipping arrangements and communicate these with the importer(s).While this approach guarantees smallholder producers access to high value chains, it also locks them into these relationships thus creating dependency. These findings imply a need for smallholder producers to learn to perform the functions necessary to integrate in high value chains in order to increase their margins. Key words: uncertainty, quality, deciduous fruit, exporters, perishability
    Keywords: Marketing
    Date: 2018–09–25
  5. By: Isabelle Aimé (IPAG - IPAG Business School - Ipag); Fabienne Berger-Remy (IAE Paris - Sorbonne Business School); Marie-Eve Laporte (IAE Paris - Sorbonne Business School)
    Abstract: Purpose-T he aim of this essay is to perform a historical analysis of the Brand Management System (BMS) in order to understand why and how, over the past century, the BMS has become the dominant marketing organizational model across Western countries and sectors and what the lessons are that can be learned from history to enlighten its current changes in today's digitized environment. Me thodology/approach-Building on Low and Fullerton's work (1994), the paper traces the evolution of the BMS from its creation in the 1930s to the recent digital era. Data from various sources-research papers, historical business books, case studies, newspaper articles, and internal documents-is analyzed to inform an intellectual historical analysis of the BMS's development. Findings-The paper uses the prism of institutional isomorphism to highlight four distinct periods that show that the BMS has gradually imposed itself on the Western world and managed to adapt to an ever-changing environment. Moreover, it shows that, in the current digital age, the BMS is now torn between two opposing directions: T he brand manager should act as both absolute expert and galvanic facilitator and the BMS needs to reinvent itself once again. O riginality/value-This paper provides a broad perspective on the BMS function to help marketing scholars, historians, and practitioners gain a better understanding of the issues currently facing the BMS and its relevance in the digital age.
    Keywords: Brand,Brand Management System,Marketing organization,Marketing history,History of marketing thought Pape r type-General review
    Date: 2018–11–19

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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