nep-mkt New Economics Papers
on Marketing
Issue of 2020‒04‒13
four papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. Tourism destination branding through advertising strategies By Longman, John; Williams, Timothy
  2. The effect of activity identity fusion on negative consumer behavior By Matthew Hawkins
  3. Should digital marketing practices be more transparent? An empirical investigation on the roles of consumer digital literacy and privacy concerns in self-service technologies By Audrey Portes; Gilles N'goala; Anne-Sophie Cases
  4. Behavior-Based Personalized Pricing: When Firms Can Share Customer Information By Chongwoo Choe; Noriaki Matsushima; Mark J. Tremblay

  1. By: Longman, John; Williams, Timothy
    Abstract: Brand confusion takes place when a person views an advertisement for a particular brand as a communication about a different brand. This empirical study was conducted in a sample of 134 men and women and based on 24 mass tourism destination advertisements of 8 different Mediterranean countries. Advertisements that were perceived as likeable and distinctive, and that were not information-overloaded suffered less from brand confusion. Destination brands with weak advertising support were found to be more vulnerable to brand confusion. Consumers with higher levels of product category involvement and higher levels of brand awareness and brand loyalty appear to confuse mass tourism destination brands less frequently.
    Keywords: mass tourism, destination promotion, advertising campaigns, brand confusion
    JEL: L83 M37
    Date: 2020–02–10
  2. By: Matthew Hawkins (ICN Business School)
    Abstract: Negative consumer behavior is an important research topic as it explores consumer behaviors that threaten a brand's image and financial stability. However, prior research offers conflicting findings on whether a strong consumer-brand relationship hurts or protects a brand following a market disruption or brand transgression. In order to offer clarity to this issue, this work argues that disrupting the consumer-activity relationship motivates consumers to re-affirm and protect their identity thereby leading to negative consumer behavior. The data reveal that, following a brand initiated market disruption, consumers with high activity identity fusion are more likely to spread negative word-of-mouth, boycott the brand, and avoid repurchasing the brand in the future. Moreover, the data suggest that high brand identity fusion protects the brand during market disruptions; therefore, prior conflicting results may be due to the fact that the consumer-activity relationship was not accounted for. Theoretically, this work establishes that a consumer's relationship with their consumption activities has significant impacts on consumer behavior. Brand managers and marketers are urged to develop strategies that focus on strengthening the consumer-brand relationship and not the consumer-activity relationship.
    Keywords: Boycott,Negative consumer behavior,Consumer-brand relationship,Consumer-activity relationship,Brand identity fusion,Activity identity fusion
    Date: 2019
  3. By: Audrey Portes (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon); Gilles N'goala (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Anne-Sophie Cases (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier)
    Abstract: The growth of self-service technologies has led to an increasing demand for transparency. More and more services are delivered online and require that, in this information asymmetry situation, customers overcome their lack of technical knowledge and risks associated with their personal data disclosure and dissemination. This article proposes a three dimensional conceptualization of digital transparency (objectivity, limpidity, openness) and examines how customer's digital literacy and privacy concerns influence the way they perceive their provider's transparency and, indirectly, their engagement to their provider. Based on an empirical research study in e-commerce (N=445), this research demonstrates the differential effects of objective and subjective digital literacies on perceived transparency and examines how customers' privacy concerns lower each dimension of perceived transparency. Finally, since each dimension of perceived transparency actually influence customer engagement, this paper urges firms to pay a specific attention to customer segments with a lower digital literacy and a higher concern for privacy.
    Keywords: transparency,digital literacy,customer engagement,privacy concerns
    Date: 2020–06–02
  4. By: Chongwoo Choe; Noriaki Matsushima; Mark J. Tremblay
    Abstract: We study a model of behavior-based price discrimination where firms can agree to share customer information that can be used for personalized pricing. We show that firms are better off sharing customer information as it softens up-front competition when they gather information, consumers are worse off as a result, but total surplus can increase thanks to the improved quality of matching between firms and consumers.

This nep-mkt issue is ©2020 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.