nep-mkt New Economics Papers
on Marketing
Issue of 2019‒03‒25
four papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. Credence Goods Markets and the Informational Value of New Media: A Natural Field Experiment By Kerschbamer, Rudolf; Neururer, Daniel; Sutter, Matthias
  2. Personalized Pricing and Brand Distribution By Jullien, Bruno; Reisinger, Markus; Rey, Patrick
  3. Antecedents and Effects of App-user Satisfaction: Empirical Evidence from Greece By Niros, Meletios; Samanta, Irene; Pollalis, Yannis; Niros, Angelica
  4. Metric and Scale Effects in Consumer Preferences for Environmental Benefits By Pleshcheva, Vlada

  1. By: Kerschbamer, Rudolf (University of Innsbruck); Neururer, Daniel (University of Innsbruck); Sutter, Matthias (Max Planck Institute for Research on Collective Goods)
    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
  2. By: Jullien, Bruno; Reisinger, Markus; Rey, Patrick
    Abstract: This paper examines the effects of personalized pricing on brand distribution. We explore whether a brand manufacturer prefers to sell through its own retail outlet only (mono distribution) or through an independent retailer as well (dual distribution). Personalized pricing allows for higher rent extraction but also leads to more fierce intra-brand competition than does uniform pricing. Due to the latter effect, a brand manufacturer may prefer mono distribution even if the retailer broadens the demand of the manufacturer’s product. By contrast, with uniform pricing, selling through both channels is always optimal. This result holds for wholesale contracts consisting of two-part tariffs as well as for linear wholesale tariffs. We also show that the manufacturer may obtain its largest profit in a hybrid pricing regime, in which only the retailer charges personalized prices. Keywords: personalized pricing, distribution channels, dual distribution, vertical contracting, downstream competition.
    Keywords: personalized pricing; distribution channels; dual distribution; vertical contracting; downstream competition.
    Date: 2019–03
  3. By: Niros, Meletios; Samanta, Irene; Pollalis, Yannis; Niros, Angelica
    Abstract: The purpose of this research is to explore the antecedents and effects of mobile app satisfaction. A survey conducted using a “positivism” approach, in which 450 app users participated to answer the research instrument. Emotional Attachment and App design proved to be the most influential antecedents of app satisfaction, whereas Safety of personal data & user identification were important as well. However, app satisfaction has no effect on Intention to upgrade to premium service, showing that the basic revenue stream still derives from advertising and sponsorships. On the other hand, Word of Mouth communication is stimulated by app user satisfaction. This finding shows that satisfaction is the vehicle to spread the value of the app to other users cheaper and with more credibility. This research provides certain implications to digital marketing practitioners and academics in order to make decisions on building strong service brands using a mobile app as a distribution channel.
    Keywords: App Satisfaction, Digital Marketing, Consumer Behaviour, Electronic Commerce
    JEL: L81 M31
    Date: 2019–02–01
  4. By: Pleshcheva, Vlada (Institut für Marketing Humboldt-Universität zu Berlin)
    Abstract: Xyz
    Keywords: choice architecture; environmental impact; framing effects; vehicle choice;
    JEL: D12 D90 M31 Q51
    Date: 2019–03–11

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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