nep-mkt New Economics Papers
on Marketing
Issue of 2020‒11‒09
two papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. Selling Consumer Data for Profit: Optimal Market-Segmentation Design and its Consequences By Kai Hao Yang

  1. By: Kai Hao Yang (Cowles Foundation, Yale University)
    Abstract: A data broker sells market segmentations created by consumer data to a producer with private production cost who sells a product to a unit mass of consumers with heterogeneous values. In this setting, I completely characterize the revenue-maximizing mechanisms for the data broker. In particular, every optimal mechanism induces quasi-perfect price discrimination. That is, the data broker sells the producer a market segmentation described by a cost-dependent cutoff, such that all the consumers with values above the cutoff end up buying and paying their values while the rest of consumers do not buy. The characterization of optimal mechanisms leads to additional economically relevant implications. I show that the induced market outcomes remain unchanged even if the data broker becomes more active in the product market by gaining the ability to contract on prices; or by becoming an exclusive retailer, who purchases both the product and the exclusive right to sell the product from the producer, and then sells to the consumers directly. Moreover, vertical integration between the data broker and the producer increases total surplus while leaving the consumer surplus unchanged, since consumer surplus is zero under any optimal mechanism for the data broker.
    Keywords: Price discrimination, Market segmentation, Mechanism design, Virtual cost
    JEL: D42 D82 D61 D83 L12
    Date: 2020–10
  2. By: Jonathan Dezecot (URCA - Université de Reims Champagne-Ardenne, REGARDS - Recherches en Économie Gestion AgroRessources Durabilité Santé- EA 6292 - URCA - Université de Reims Champagne-Ardenne - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne); Nathalie Fleck
    Abstract: Our research highlights the impact of the name of an artisanal shop (personified and/or 'marketed') on consumer beliefs and reactions. An experimental study was conducted on 120 consumers. The design of this study was a 2 (presence of the artisan name vs absence) X 2 ('marketed 'name vs not 'marketed' name) between-subjects design and tests the impact of these four conditions on consumers' reactions. Results show the positive impact of the personified name on beliefs, affective and behavioral reactions, a negative impact of a marketed name on artisan's authenticity and attachment. Moreover, this study highlights the central role of the Stereotype Content Model dimensions, warmth and competence (Fiske et al., 2002) in the relationship between the personification of an artisanal shop name and the consumers beliefs and reactions.
    Abstract: Cette recherche s'intéresse à l'effet d'un nom de boutique artisanale (personnifié et/ou 'marketé') sur les croyances des consommateurs vis-à-vis de l'offre et leurs réactions affectives et comportementales à l'égard de l'artisan. L'expérimentation réalisée auprès de 120 consommateurs s'appuie sur un design factoriel 2 (présence du nom de l'artisan vs absence) X 2 (nom perçu comme 'marketé' vs non 'marketé'). Les résultats montrent un effet positif de la personnification du nom de la boutique aussi bien sur les croyances que sur les réactions affectives et comportementales, un effet négatif du caractère 'marketé' du nom sur l'authenticité et l'attachement. Enfin, cette étude souligne le rôle médiateur joué par les deux dimensions du Stereotype Content Model (Fiske et al., 2002), le caractère chaleureux et la compétence perçue, sur la relation entre la personnification du nom d'une boutique artisanale et les croyances et réactions des consommateurs.
    Keywords: Artisan,Personnification,stéréotype content model,expérimentation
    Date: 2019–05–15

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