nep-mkt New Economics Papers
on Marketing
Issue of 2022‒03‒14
three papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. Cloud computing's influence on digital marketing By Abid, Hofa
  3. Compromise pricing in luxury By Béatrice Parguel; Annalisa Fraccaro; Sandrine Macé

  1. By: Abid, Hofa (Bt research scoiety)
    Abstract: Numerous cloud-based marketing apps, ranging from CRM systems to marketing automation tools, are already in widespread usage today. These services assist marketers in tracking their campaigns and efforts across mobile, social, and Web platforms, as well as consumer interactions. There are more methods to engage prospective clients in this technological era, as Internet use has expanded across devices - but it's also more difficult to capture their attention. Consumers want for material that is original, organic, engaging, and individualized. Marketers may use cloud technologies to create new plans based on data and to create more customized and targeted marketing. These tools are almost certainly going to be integrated with one of the following digital marketing components.
    Date: 2021–12–18
  2. By: Chen, T.C.
    Abstract: Traditional advertising is the main media employed by marketers in the FMCG sector to affect consumers decisions. However, people are exposed to plenty of advertising media from various forms and different channels every day, especially from social media. Therefore, digital advertising should be more powerful than traditional advertising in this era. This paper seeks to study when consumers choose daily necessities, whether these advertisements affect their decisions, and whether social media advertising effectively influences consumers purchase decisions. In order to promote the development of digital and social media advertising research in the FMCG sector, this paper proposes further research directions.
    Date: 2021–12–15
  3. By: Béatrice Parguel (DRM - MLAB - Dauphine Recherches en Management - MLAB - DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique); Annalisa Fraccaro; Sandrine Macé
    Abstract: Purpose Going beyond odd and even prices, this paper aims to explore the rationale behind the widespread practice of setting prices ending in "50" or "80" in the luxury industry. The authors argue that when they set such prices, managers agree to reduce their profit margin to limit the anticipated guilt luxury consumers associate with luxury shopping while also protecting their brand luxury. The authors label these prices compromise prices and formally define compromise pricing as the practice of choosing a price's ending so that the price falls below (but not just below) a round number to boost sales without damaging brand luxury. Design/methodology/approach Following the observation of the overrepresentation of prices ending in "50" and "80" in the luxury clothing category, an experiment explores the impact of compromise prices on anticipated guilt and brand luxury in the luxury watch category. Then, to identify when luxury pricing managers typically favor compromise prices, multinomial regressions investigate prices collected on two online luxury fashion retailers for the luxury clothing and handbag categories. Findings Compromise prices reduce the anticipated guilt luxury consumers associate with luxury shopping compared with even prices while enhancing brand luxury compared with odd prices and interestingly, with even prices also. This finding gives rationale to luxury managers' preference for compromise prices in the ninth hundred (i.e. €X950, €X980), especially for higher-priced products, i.e. when the potential for price underestimation and/or the risk of damaging brand luxury are more important. Originality/value This research contributes to the field of luxury pricing by providing evidence to an original price-ending practice, coined compromise pricing, which consists in agreeing to a slight reduction in prices and unit margin to protect brand luxury.
    Keywords: Compromise pricing,price endings,anticipated guilt,brand luxury
    Date: 2021–09–27

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