nep-mkt New Economics Papers
on Marketing
Issue of 2022‒02‒14
four papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. What is the Pulse of Businesses in a Digitalised Era? By Ionut-Alexandru Horhogea
  2. Information Source and Content – Drivers for Consumers’ Valuation of Fairly Traded Foods By von Grafenstein, Liza; Iweala, Sarah; Ruml, Anette
  3. Thumbs Down for the Thumbs Up Emoji: Experimental Evidence on the Impact of Instantaneous Positive Reinforcement on Charitable Giving By Ben Grodeck; Philip J. Grossman
  4. Video-based behavioral change communication to change consumption patterns: Experimental evidence from urban Ethiopia By Abate, Gashaw Tadesse; Baye, Kaleab; de Brauw, Alan; Hirvonen, Kalle; Wolle, Abdulazize

  1. By: Ionut-Alexandru Horhogea (University of Birmingham, Birmingham, United Kingdom)
    Abstract: Previously, the laborers believing in an automatized business could have been considered dreamy, looking to skip daily tasks. Nowadays, the spectrum upon automatization and platforms facilitating e-commerce has changed and highlights the jump from a brick and mortar store to a virtual one. More and more established brands are replacing classic locations with logistic warehouses to deliver products more efficiently. Well-known companies, e.g., Zara, Amazon, eBay that have been recently founded, embraced this change and took the best out of it. However, our attention will fall on smaller businesses and the difficulties they face during such a transition and analyses from various standpoints the goods and the bads of each. Should the jump from a physical to an online facility be considered or left untouched? What is the best model to be followed in order to level a business? Let us find in the following.
    Keywords: digital business, physical store, evolution, management, marketing, logistics
    Date: 2021–08
  2. By: von Grafenstein, Liza; Iweala, Sarah; Ruml, Anette
    Abstract: To learn about the role of information content and source as catalysts to increase consumers’ valuation of fairly traded foods, we conducted an online survey with 2,500 consumers representative of the German population. Within the online survey, respondents were randomly assigned to one of five information treatments or the control group. We employ the contingent valuation approach to measure the willingness-to-pay (WTP) premium for chocolate with the Fairtrade label compared to similar conventional chocolate. To estimate WTP and the outcome which measures the participants’ purchasing intentions, we use ordinary least squares and interval regressions. We find that German consumers are willing to pay a high price premium for a Fairtrade label despite limited knowledge about the certification. This WTP is relatively robust to additional supportive information provision irrespective of the information source. However, the broader measure of behavior, the purchasing intention, can rise due to information provided by a retailer or the government. While a supportive statement by a university does not seem to incentivize the valuation of Fairtrade certified chocolate, we find that an unsupportive (zero effect) statement of the same source can discourage the purchasing intention. Our findings imply that policymakers and scientists need to mind the risk of generalized science communication and create information campaigns to increase purchasing frequency.
    Keywords: Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Labor and Human Capital
    Date: 2021–12
  3. By: Ben Grodeck (Department of Economics, Monash University); Philip J. Grossman (Department of Economics, Monash University)
    Abstract: Historically, positive reinforcement (PRI) for charitable giving happens after the fact; thank-you letters, calls, or gifts from the charities to donors. With online giving becoming more prominent, this creates an opportunity for instantaneous PRI. Our study offers the first evidence, to our knowledge, of the effect of instantaneous PRI on donation behavior. We conduct a large-scale online experiment on Amazon Mturk (n=2,375). Participants are randomly assigned to either a baseline with no PRI; a treatment in which subjects receive a static PRI thumbs up emoji (a general recognized gesture of approval); a treatment in which subjects receive a dynamic PRI thumbs up emoji [the emoji increases (decreases) in size as the size of the donation increases (decreases)]; and two other controls. We find that, consistent with much of the findings on thank-you letters, calls, and gifts, our instantaneous dynamic PRI has no significant positive effects on donation behavior. Surprisingly, we also find that static PRI results in significantly less being donated. These results suggest that organizations and policymakers should be hesitant in using instantaneous PRI, as it ranges from null to negative effects.
    Keywords: Positive reinforcement, Charitable giving, Experiment, Fundraising
    JEL: C90 D91 H40
    Date: 2022–02
  4. By: Abate, Gashaw Tadesse; Baye, Kaleab; de Brauw, Alan; Hirvonen, Kalle; Wolle, Abdulazize
    Abstract: Poor diet quality has been widely identified as a primary reason for malnutrition and the increasing burden of non-communicable diseases in low- and middle-income countries. Low consumption of fruits and vegetables contributes to poor diet quality, and one factor leading to low fruit and vegetable consumption is limited consumer awareness of the health and nutrition benefits of consumption. In this study, we experimentally assess a method of increasing consumer awareness, specifically, through showing households two different versions of a video embedded with messages about increasing fruit and vegetable consumption. The first video included just the basic recommended consumption behavior messages, while the second video also explained why and how fruit and vegetable consumption could improve health and nutrition outcomes. Even four months after viewing the video, average household consumption of fruits and vegetables increased by about 10 percent in both treatment groups relative to the control group, both in kilocalorie and consumption expenditure terms. The videos were developed to eventually show on national TV, suggesting that embedding dietary BCC messages in popular media can have positive impacts on diet quality at scale.
    Keywords: ETHIOPIA; EAST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; diet; fruit; vegetables; urban areas; malnutrition; consumer education; nutrition education; videos; behavior change communication; diet quality
    Date: 2021

This nep-mkt issue is ©2022 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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