nep-mkt New Economics Papers
on Marketing
Issue of 2023‒01‒02
two papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. The Impact of Behavioral Economics on Marketing: The Case of Multinational Consumer Companies in Egypt By Radi, Sherihan
  2. The Economics of Recommender Systems: Evidence from a Field Experiment on MovieLens By Guy Aridor; Duarte Goncalves; Daniel Kluver; Ruoyan Kong; Joseph Konstan

  1. By: Radi, Sherihan
    Abstract: Since behavioral economics became popular, it is considered a top tool that provides marketers with observations and understanding of consumers’ behavior and preferences. The purpose of this descriptive research is to examine the impact of behavioral economics on marketing, particularly at multinational consumer companies in Egypt. The study population consisted of 750 employees working in 3 multinational consumer companies in Egypt. Stratified random sampling technique was used to sample 100 respondents while the measure of reliability was tested using Cronbach’s alpha at 0.7. Primary data was collected using a questionnaire and frequency distribution tables and figures were used to present the findings. Interpretation was done in prose form and simple regression analysis was conducted by the researcher in order to examine the relationship between behavioral economics and marketing. The inferential results on the impact of behavioral economics on marketing was R=0.623 indicating a significant positive correlation and R 2=0.389 indicating a significant positive impact of behavioral economics on marketing (t=7.522, p
    Keywords: behavioral economics, marketing, multinational consumer companies, Egypt.
    JEL: M20 M21
    Date: 2022–11–11
  2. By: Guy Aridor; Duarte Goncalves; Daniel Kluver; Ruoyan Kong; Joseph Konstan
    Abstract: We conduct a field experiment on a movie-recommendation platform to identify if and how recommendations affect consumption. We use within-consumer randomization at the good level and elicit beliefs about unconsumed goods to disentangle exposure from informational effects. We find recommendations increase consumption beyond its role in exposing goods to consumers. We provide support for an informational mechanism: recommendations affect consumers' beliefs, which in turn explain consumption. Recommendations reduce uncertainty about goods consumers are most uncertain about and induce information acquisition. Our results highlight the importance of recommender systems' informational role when considering policies targeting these systems in online marketplaces.
    Date: 2022–11

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