nep-mkt New Economics Papers
on Marketing
Issue of 2019‒08‒12
five papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. Does subliminal advertisement affect consumer behavior? An exploratory comparative analysis between marketing and non-marketing professionals. By Soomro, Yasir Ali
  2. Consumer Attitude and Reaction towards Personalised Pricing in the E-Commerce Sector By Vijay Victor
  3. The Effect of Product, Service, and Customer Satisfaction on Word-of-Mouth Behavior By Setyani Dwi Lestari
  4. Splitting shopping and delivery tasks in an on-demand personal shopper service By Arslan, A.M.; Agatz, N.A.H.; Klapp, M.
  5. The Rise of Niche Consumption By Brent Neiman; Joseph S. Vavra

  1. By: Soomro, Yasir Ali
    Abstract: This research study is an effort to explore the difference in the understanding of marketers and non-marketers about their perception, awareness, knowledge, attitude and behavior about the subliminal messages in advertising. To serve the objective of comparative analysis conceptual model was developed for both groups which involved Perception, Awareness and Knowledge relationship with attitude, then relationship of attitude on Behavior towards the brand. Three commercials were selected which had embedded subliminal messages and respondents viewed the advertisements before filling out questionnaires to identify their level of awareness and the degree of knowledge about the type of subliminal content embedded in the ads. For each group total of 140 participants gave their responses. Structural Equation modeling was performed to test the hypothesized relationship between variables. Results of Path analysis show that only one factors for marketers, such that Knowledge about subliminal messages had significant positive effect on attitude towards subliminal Ads. Also marketers’ attitude towards subliminal ads was negatively significant on behavior towards brand. For non-marketers, no support for any of the hypotheses found. Overall results reveal that both the marketing and non-marketing professionals view and perceive the subliminal messages embedded in the ads with a statistically significant difference.
    Keywords: Subliminal Ads, Perception, Awareness, Knowledge, Attitude, Behavior and SEM.
    JEL: M30 M31 M37
    Date: 2018–04–14
  2. By: Vijay Victor (Doctoral School of Management and Business Administration, Szent István University, Hungary Author-2-Name: Maria Fekete-Farkas Author-2-Workplace-Name: Faculty of Economics and Social Sciences, Szent Istvan University, Godollo 2100, Hungary Author-3-Name: Zoltan Lakner Author-3-Workplace-Name: Doctoral School of Management and Business Administration, Szent Istvan University, Godollo 2100, Hungary 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 - This study examines consumer attitudes and reactions towards personalised pricing strategies in a negative and positive hypothetical purchase context. Methodology/Technique - The data was collected from 250 respondents from India through a set of two structured questionnaires, each one comprising either a positive or negative purchase scenario. Partial Least Square based Structural Equation Modelling (PLS SEM) was used to analyse the data. Findings - The results of the study imply that the consumers are concerned about the usage of their personal data for price customisation which reduces their repurchase intentions and increases the reprisal intention. The results also depict that a loyal customer base reacts positively to some extent to the personalised pricing strategy. Novelty - This study considers the impact of personalised pricing on the fair price perceptions, privacy concerns and customer loyalty in both positive and negative purchase contexts which is a novel in this research area.
    Keywords: Personalised Pricing; E-Commerce; Consumer Behaviour; Price Discrimination, PLS SEM.
    JEL: D82 D90 D11
    Date: 2019–06–19
  3. By: Setyani Dwi Lestari (Budi Luhur University, Jl. Ciledug Raya, Petukangan Utara, 12260, Jakarta Selatan, Indonesia Author-2-Name: Mariah Author-2-Workplace-Name: Budi Luhur University, Jl. Ciledug Raya, Petukangan Utara, 12260, Jakarta Selatan, Indonesia Author-3-Name: Heni Iswanti Author-3-Workplace-Name: Budi Luhur University, Jl. Ciledug Raya, Petukangan Utara, 12260, Jakarta Selatan, Indonesia Author-4-Name: Umbar Riyanto Author-4-Workplace-Name: Budi Luhur University, Jl. Ciledug Raya, Petukangan Utara, 12260, Jakarta Selatan, Indonesia 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 - Banks are financial intermediaries which are vital to support the economy of a country. Banks can be interpreted as the financial institutions whose activities are collecting funds from the community, distributing the funds back to the community, and providing other banking services. The development and improvement of service quality from the banks should be the center of public attention. This is because of the tight competition in terms of quality of the services, products, and marketing strategies undertaken by the banks. In an environment of tight competition, the top priorities of service companies such as banks are customer satisfaction and excellent service quality in order to improve customer loyalty and word-of-mouth behavior. This research aims to study, analyze, and explore the effect of product, service, and customer satisfaction on word-of-mouth (WOM) behavior at PT Bank Jakarta. Methodology/Technique - The models used in this research is a descriptive and associative model using SPSS 19. This study uses a simple random sampling technique with a total sample of 80 people. The research instrument used as a measuring tool in this study is a questionnaire consisting of 40 statements. Findings & Novelty - The result of this research show that product (X1), service (X2), and customer satisfaction (X3) simultaneously affect word-of-mouth behavior (Y). The results conclude that PT Bank Windu Kentjana International Tbk Jakarta should improve the quality of its products and services delivered to its customers and prospective customers in order to build their loyalty and improve their word-of-mouth.
    Keywords: Product; Service; Customer Satisfaction; Word of Mouth Behavior.
    JEL: M30 M31 M39
    Date: 2019–06–17
  4. By: Arslan, A.M.; Agatz, N.A.H.; Klapp, M.
    Abstract: We introduce a personal shopper service that offers the same-day delivery of products avail- able at brick and mortar stores. Each customer request is placed online and could involve items from multiple stores. The operator of this service has to dynamically accept requests, coordinate a fleet of shoppers, schedule shopping operations at stores and execute deliveries of accepted re- quests to customers on time. Our work focuses on studying the benefits of splitting requests into smaller tasks served by different shoppers in parallel and consolidating tasks with a common shopping location into one store visit. We present and solve an online optimization model and empirically show that the percentage of requests served increases when request splitting is al- lowed. This benefit is mostly obtained due to an increased shopper utilization, reduced shopping times, and cheaper routing options available.
    Keywords: on-demand, personal shopper service
    Date: 2019–07–30
  5. By: Brent Neiman; Joseph S. Vavra
    Abstract: We show that over the last 15 years, the typical household has increasingly concentrated its spending on a few preferred products. However, this is not driven by “superstar” products capturing larger market shares. Instead, households increasingly focus spending on different products from each other. As a result, aggregate spending concentration has in fact decreased over this same period. We use a novel heterogeneous agent model to conclude that increasing product variety is a key driver of these divergent trends. When more products are available, households can select a subset better matched to their particular tastes, and this generates welfare gains not reflected in government statistics. Our model features heterogeneous markups because producers of popular products care more about maximizing profits from existing customers, while producers of less popular niche products care more about expanding their customer base. Surprisingly, however, our model can match the observed trends in household and aggregate concentration without any resulting change in aggregate market power.
    JEL: D12 D4 E21 E31
    Date: 2019–08

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.