nep-mkt New Economics Papers
on Marketing
Issue of 2021‒02‒22
five papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. Exclusive Data, Price Manipulation and Market Leadership By Yiquan Gu; Leonardo Madio; Carlo Reggiani
  2. The Great Psychology behind the Marketing Scene By Ionut-Alexandru Horhogea
  4. Generalizable and Robust TV Advertising Effects By Bradley Shapiro; Günter J. Hitsch; Anna Tuchman

  1. By: Yiquan Gu; Leonardo Madio; Carlo Reggiani
    Abstract: The unprecedented access of firms to consumer level data not only facilitates more precisely targeted individual pricing but also alters firms’ strategic incentives. We show that exclusive access to a list of consumers can provide incentives for a firm to endogenously assume the price leader’s role, and so to strategically manipulate its rival’s price. Prices and profits are non-monotonic in the length of the consumer list. For an intermediate size, price leadership entails an equilibrium outcome characterised by supra-competitive prices and low consumer surplus. In contrast, for short or long lists of consumers, exclusive data availability intensifies market competition.
    Keywords: Exclusive data, Personalised pricing, Price leadership, Strategic price manipulation
    JEL: D43 K21 L11 L13 L41 L86 M21 M31
    Date: 2021–01
  2. By: Ionut-Alexandru Horhogea (University of Birmingham, Birmingham, United Kingdom)
    Abstract: Zoon Politikon may be considered the main byname of human beings. It is ought to the similarities between each individual and animal, regarding involuntary instincts. The fundamental reason for our top placement as humans, in nature, is given by ability to think and promptly react according to it. Considering that, should we take advantage of others’ involuntary instincts when it comes about marketing? As the concept of marketing is a truly complex matter, we could minimize the stress of understanding it by arranging it like a family tree. All we have to do is to exchange our relatives from it with fundamental principles of marketing and psychology and place them from bottom to top, former representing the most important aspects and latter, the least. But what if we want to “cut this tree†as a metaphor for selling a product to a customer while taking advantage of his involuntary instincts? Let’s find out in the following.
    Keywords: psychology, marketing, selling products, exploit
    Date: 2020–10
  3. By: Muhammad Taqi (European University of Lefke, Faculty of Business, Izmir, Turkey)
    Abstract: The internet has become one of the most important and influential aspects of human lives, which cannot simply be parted away. The virtual world, which is accessed through the internet, has changed the lives of people throughout the world. It has shaped people's opinions related to everything around them and most importantly, of consumer goods and services. These opinions can take form both in positive or negative emotional messages which show the type of consumer-brand relationship that exists. The consumer-brand relationship which has its two extremes, on the positive side of the spectrum is the emotion of Love and on the other end of the spectrum lies the emotion of Hate which is one of the most extreme negative forms of emotion. It is a similar emotion like other emotions that are built over time, but at times, can be a result of spontaneous reaction towards an event. The current conceptual study aims to explore how e-marketing and social media platforms participate in the development of brand hate in consumers. The study goes over various forms of online marketing tools to show how they aid in developing brand hate in consumers. The study concludes that online marketing and social media do aid in developing brand hate and other negative emotions towards a brand.
    Keywords: Brand Hate, Negative Emotions, Online Marketing, Brand Relationship, ConsumerBrand Relationship
    JEL: D1 M30
    Date: 2020–12
  4. By: Bradley Shapiro (University of Chicago - Booth School of Business; NBER); Günter J. Hitsch (University of Chicago - Booth School of Business); Anna Tuchman (Northwestern University - Kellogg School of Management)
    Abstract: We provide generalizable and robust results on the causal sales effect of TV advertising for a large number of products in many categories. Such generalizable results provide a prior distribution that can improve the advertising decisions made by firms and the analysis and recommendations of policy makers. To provide generalizable results, we base our analysis on a large number of products and clearly lay out the research protocol used to select the products. We characterize the distribution of all estimates, irrespective of sign, size, or statistical significance. To ensure generalizability, we document the robustness of the estimates. First, we examine the sensitivity of the results to the assumptions made when constructing the data used in estimation. Second, we document whether the estimated effects are sensitive to the identification strategies that we use to claim causality based on observational data. Our results reveal substantially smaller advertising elasticities compared to the results documented in the extant literature, as well as a sizable percentage of statistically insignificant or negative estimates. Finally, we conduct an analysis of return on investment (ROI). While our results show that many brands perform better with their observed advertising than they would without advertising, we document considerable over-investment in advertising at the margin.
    Keywords: Advertising, publication bias, generalizability
    JEL: B41 C18 C52 C55 C81 L00 L15 L81 M31 M37
    Date: 2020
  5. By: Farzaneh Soleimani Zoghi (SRH University of Applied Sciences Berlin)
    Abstract: An online purchase decision confronts consumers with some challenges. Internet offers consumers access to a vast amount of information but the sources of information mostly are not reliable. Literature suggests that perception of risk acts as barrier to online shopping. The aim of this study is to determine the impact of perception of risk on consumers’ online buying intention in Germany. Moreover, in order to get indications of consumers’ online shopping behavior, the effect of perceived behavioral control and e-WOM credibility has also been investigated. In this research different analysis including descriptive statistics, confirmatory factor analysis and multiple regression analysis have been used. The hypotheses of the research have been partially supported. The results indicate that perceived behavioral control has influence on consumers’ perception of risk and online buying intention. However, e-Wom credibility didn’t have any effect on consumers’ perception of risk and online buying intention. Moreover findings of current study do not support any significant relationship between consumers’ perception of risk and their online buying intention in Germany
    Keywords: Online Buying Intention, Perceived Behavioral Control, e-WOM Credibility, Perception of Risk
    JEL: M13 M20 M31
    Date: 2019–06

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