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on Marketing |
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Issue of 2016‒01‒29
twelve papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Ankamah-Yeboah Isaac (Department of food and Resource Economics, Faculty of Science, University of Copenhagen, Denmark); Max Nielsen (Department of food and Resource Economics, Faculty of Science, University of Copenhagen, Denmark); Rasmus Nielsen (Department of food and Resource Economics, Faculty of Science, University of Copenhagen, Denmark) |
| Abstract: | The year 2016 is groundbreaking for organic aquaculture producers in EU, as it represents the deadline for implementing a full organic life cycle in the aquaculture production. Such a shift induces production costs for farmers and if it should be profitable, they must receive higher prices. This study identifies the price premium on organic salmon in the Danish retail sale sector using consumer panel scanner data for households by applying the hedonic price model. A premium of 20% for organic salmon is found. Since this premium is closer to organic agriculture products than to ecolabelled capture fisheries products, it indicates that consumers consider organic salmon as an agriculture product more than fisheries product. |
| Keywords: | price premium, organic seafood, fisheries ecolabel, salmon; price premium, organic seafood, fisheries ecolabel, salmon |
| Date: | 2015 |
| URL: | https://d.repec.org/n?u=RePEc:irf:wpaper:003&r=mkt |
| By: | Fitzgerald, Doireann (Federal Reserve Bank of Minneapolis); Haller, Stephanie (University College Dublin); Yedid-Levi, Yaniv (University of British Columbia) |
| Abstract: | We show that after firms enter new export markets, there are striking dynamics of quantities, but no dynamics of prices, controlling for both costs and selection. This points to an important role for demand in the growth of successful exporters, and to a nonprice mechanism through which quantity demanded grows. A model where firms engage in costly investment in customer base through marketing and advertising, and learn about their idiosyncratic demand, can qualitatively match these facts, along with a declining exit hazard. We structurally estimate the model and find that costs of adjusting customer base are key to explaining how exporters grow. |
| Keywords: | Firm dynamics; Exporter dynamics; Customer base |
| JEL: | E20 F10 L10 |
| Date: | 2016–01–21 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedmsr:524&r=mkt |
| By: | Johnson, Myriah; Palma, Marco; Miller, Rhonda; Morrill, Jessie; Anderson, David; Sawyer, Jason; Wickersham, Tryon; Richardson, James |
| Abstract: | The objective of this research was to determine consumer preferences for tenderness, quality grade, origin, use of growth technologies, and price of beef, sirloin steak, specifically. Two hundred twenty three consumers participated. Of these, 96 consumers participated in a sensory tasting panel for sirloin steak before completing a choice set survey while the remaining 127 completed the choice set survey. A structural difference was found in the results between the two groups. The eating experience was found to be critical, altering the preferences of consumers. Consumers overstated their willingness-to-pay (WTP) for credence attributes before tasting the product. After tasting products, factors that influence the eating experience (tenderness, quality grade) still dominated as the most important and influential attributes on WTP. The lack of WTP premium or discount from the no tasting group for beef quality grade may indicate a lack of knowledge about the meaning of the grade terms “choice” and “select.” Sensory panel participants reported a significant WTP premium for Choice indicating they value that quality when they eat it. The use of no hormones and no antibiotics in production had a premium of $2.34/kg among the no tasting group, but after tasting the premium was reduced to $1.19/kg. |
| Keywords: | Consumer Willingness-to-Pay (WTP), Beef, Consumer Preference, Discrete Choice Experiment, Cattle, Consumer/Household Economics, Institutional and Behavioral Economics, Livestock Production/Industries, Marketing, |
| Date: | 2016 |
| URL: | https://d.repec.org/n?u=RePEc:ags:saea16:229610&r=mkt |
| By: | Katrin Zander (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Doreen Bürgelt (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Inken Christoph-Schulz (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Petra Salamon (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Daniela Weible (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig) |
| Abstract: | Increasing shares of fish products are sold as sustainably caught. This contribution tackles consumers’ specific knowledge on, interest in and expectations about sustainable fisheries and its products, their awareness of existing sustainability labels on fish as well as the purchase relevance of these labels in Germany. We conducted in total 12 focus groups with fish consumers in different German cities. The results show that consumers expect sustainable fisheries to avoid by-catches, overfishing and not to use dynamite. Knowledge about fisheries was mostly low and for many of the discussants this topic was new. When asked in an unprompted manner for their awareness of different labels of sustainably caught wild fish, the label of the Marine Stewardship Council was the only one known by some of the participants. It turned out that participants were skeptical about food labeling and standard setting in general. Accordingly, many participants stated not to look for sustainability labels when purchasing fish products. In order to tackle with consumers’ limited knowledge of fish and low interest in additional information, communication of sustainability in fisheries should be short, simple and reliable. Sustainability standards which clearly differentiate from noncertified fisheries are required. |
| Keywords: | consumer behaviour, consumer attitudes, sustainable fisheries; consumer behaviour, consumer attitudes, sustainable fisheries |
| JEL: | Q13 Q22 |
| Date: | 2015 |
| URL: | https://d.repec.org/n?u=RePEc:irf:wpaper:004&r=mkt |
| By: | Chiu, Leslie J. Verteramo; Gomez, Miguel I.; Liaukonyte, Jura; Kaiser, Harry M. |
| Abstract: | The motivation to pay a premium for socially responsible products is partly an expression of consumer concern for the well-being of those involved in the production process. Thus, choosing to buy a product with a socially responsible label and choosing to donate to a charity are similarly motivated actions. While there is an extensive literature on the economics of charitable giving that examines motivations to donate as well as on the impacts of labeling on consumer demand, there is very little overlap between the two literatures. In this paper we attempt to bridge these two literatures by investigating whether consumers have heterogeneous motivations for paying a premium. We design a lab experiment that auctions coffee with hypothetical socially responsible labels that put different weights on in-kind vs. cash transfers. We find that those consumers who prefer to restrict most of the premium to be an in-kind transfer (and are classified as paternalistic altruists) are willing to pay a 52.5% price premium over standard coffee. Those who prefer that most of the premium is paid as cash to the recipient (strong altruists) are willing to pay a 42.5% premium. Finally, those who are indifferent to how the premium is spent by the recipient (warmglow givers) are willing to pay only a 19.2% premium. We discuss the implications of our results and future research directions |
| Keywords: | The motivation to pay a premium for socially responsible products is partly an expression of consumer concern for the well-being of those involved in the production process. Thus, choosing to buy a product with a socially responsible label and choosing to donate to a charity are similarly motivated actions. While there is an extensive literature on the economics of charitable giving that examines motivations to donate as well as on the impacts of labeling on consumer demand, there is very little overlap between the two literatures. In this paper we attempt to bridge these two literatures by investigating whether consumers have heterogeneous motivations for paying a premium. We design a lab experiment that auctions coffee with hypothetical socially responsible labels that put different weights on in-kind vs. cash transfers. We find that those consumers who prefer to restrict most of the premium to be an in-kind transfer (and are classified as paternalistic altruists) are willing to pay a 52.5% price premium over standard coffee. Those who prefer that most of the premium is paid as cash to the recipient (strong altruists) are willing to pay a 42.5% premium. Finally, those who are indifferent to how the premium is spent by the recipient (warmglow givers) are willing to pay only a 19.2% premium. We discuss the implications of our results and future research directions, Consumer/Household Economics, D12, M3, Q11, |
| Date: | 2015 |
| URL: | https://d.repec.org/n?u=RePEc:ags:assa16:212829&r=mkt |
| By: | Chandler, Luke |
| Abstract: | Food and agricultural producers across Australia and New Zealand are increasingly turning their attention to their close neighbours on the Asian continent. The proximity of almost a third of the world’s population has always been impossible to ignore; however, the region has taken on a new level of significance in recent times as developing countries across Asia have embarked upon their journeys of economic transformation. Rising incomes across Asia and the changing dietary habits of households have already had a significant influence on many global agricultural markets and trade flows. This influence is expected to strengthen in coming years as the region increases its share of the global economy, while remaining somewhat limited in its ability to satisfy its own growing needs and wants for food and fibre products. Indeed, the dawning of the so-called ‘Asian Century’ holds great promise, but it also presents a great challenge to Australian and New Zealand (ANZ) food and agricultural producers. Understanding the business risks of supplying a diverse economic, cultural and political region is critical for ANZ farmers and agribusinesses to maximise the value of their expansion into Asia. Improving their understanding of these factors will also allow ANZ agribusinesses to better respond to the opportunities emerging in Asia at the right scale. Developing strong partnerships along the supply chain and across borders will be critical to the success of Australia and New Zealand in capturing value in the growing Asian markets. Increasingly, consumers across Asia are demanding high levels of food safety and traceability, with many willing and able to pay a premium for the clean and green food we produce. Australia and New Zealand together supply less than 10% of Asia’s total food and agricultural imports: our focus needs to be on leveraging the many attributes of agricultural sectors at the high-value end of the market. |
| Keywords: | Agribusiness, Agricultural and Food Policy, |
| Date: | 2014–08 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp14:225567&r=mkt |
| By: | Hayashi, Fumiko (Federal Reserve Bank of Kansas City); Hanson, Josh (Federal Reserve Bank of Kansas City); Maniff, Jesse Leigh (Federal Reserve Bank of Kansas City) |
| Abstract: | This paper examines whether some of the unbanked consumers' choice of general purpose reloadable (GPR) prepaid cards over checking accounts and alternative financial service (AFS) products can be explained by the cost incurred by those consumers. We compare the three types of products by constructing consumer models based on the actual behavior of GPR prepaid cardholders and applying those models to the fee schedules of actual products offered in the market. Overdrafts are a major factor affecting the cost rankings. For consumers who regularly or occasionally overdraw their accounts, checking accounts are more costly than GPR cards or AFS products. In contrast, for consumers who do not need overdraft capability and short-term credit, GPR cards are more costly than checking accounts. The cost difference across the products clearly explains the former type of consumers' choice of financial products, while it does not explain the latter type of consumers' choice. |
| Keywords: | General purposes reloadable prepaid cards (GPR); Checking accounts; Alternative financial services (AFS); Overdraft; Unbanked |
| JEL: | D12 E42 G21 |
| Date: | 2015–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedkrw:rwp15-15&r=mkt |
| By: | Almodarra, Sattam; Saghaian, Sayed |
| Abstract: | Abstract This study is to measure competitiveness and its effect on the quantity of Saudi exports of dates in the international market between 1990- 2011. In order to measure the competitiveness of date exports, the study depended on a number of indexes such as the revealed comparative advantage and the competitive advantage. The study also depended on the analysis of simple regression to study the relationship between the Saudi exports of dates and the competitiveness indexes during the study period. This study showed that the United Arab Emirates (UAE) is the main market for Saudi exports of dates, as it imported about 61.2%, followed by the United Kingdom (UK) at 12.8%, then Syria, Jordan, Kuwait, Sri Lanka, and Qatar at 3.8%, 1.5%, 1.4%, 1.1% and 1.1%, respectively between 2000 and 2011. The average of the revealed comparative advantage and the competitive advantage for Saudi exports of dates is 49.27 and 55.25 respectively. The Kingdom of Saudi Arabia is distinguished with the revealed comparative advantage and the competitive advantage for date exports between 1990 and 2011. The study showed that there is an increase by 10% in the competitive advantage for the exports of Saudi dates, resulting in an increase in Saudi exports of the same good by 10.37%. The study recommends the importance of increasing the competitiveness of Saudi exports of dates in the international market through technological advances used in packaging and storage. Additionally, the study recommends creating a new market for Saudi exports of dates by assigning commercial representation to prepare studies of external demands on date exports, and provide information about foreign consumer tastes to exporters. Commercial representation will also provide Saudi Arabia information about the quantity and type of dates that foreign consumers need, as well as the export prices of competitive countries in the international market. Keywords: dates, competitiveness, exports, international market. |
| Keywords: | Agribusiness, International Relations/Trade, Marketing, |
| Date: | 2016–02–06 |
| URL: | https://d.repec.org/n?u=RePEc:ags:saea16:226143&r=mkt |
| By: | Caitlan Russell and Corne van Walbeek |
| Abstract: | This paper uses price data, collected by Statistics South Africa, to estimate the effect of a change in the excise tax on the retail price of beer. We find strong evidence that the excise tax on beer is overshifted to consumers. The pass-through coefficient is estimated at 4.83 (95% CI: 4.02; 5.64) for lager, and at 4.77 (95% CI: 4.04; 5.50) for all beer (which includes dark beer). This implies that for every R1/unit increase in the excise tax, the retail price increases by about R4.80/unit. Of the 23 brand-packaging combinations considered, the pass-through coefficients vary between 2.39 and 10.05 (median = 5.30). The majority of the price change in response to a tax change occurs immediately, and prices have fully adjusted two months after the excise tax increase becomes effective. Pass-through differs substantially across packaging types. The pass-through coefficient on 750ml bottles is substantially lower than that of 330 ml (or 340 ml) cans and 6 x 330 ml (or 6 x 340 ml) “six-packsâ€. The overshifting of the excise tax has positive implications for public health policy, since they increase the effectiveness of alcohol taxes as a tool to reduce the (excessive) consumption of beer. |
| Keywords: | Excise Tax, Beer, South Africa |
| Date: | 2016 |
| URL: | https://d.repec.org/n?u=RePEc:rza:wpaper:573&r=mkt |
| By: | Cavaliere, A.; De Marchi, E.; Banterle, A. |
| Keywords: | Nutrition facts and claims, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, |
| Date: | 2015 |
| URL: | https://d.repec.org/n?u=RePEc:ags:eaa148:229274&r=mkt |
| By: | Livingston, James |
| Abstract: | The purpose of this study is to examine the key factors that affect the adoption of mobile enterprise applications by Commercial Bankers. A review of technology acceptance literature relating to mobile apps for employees found that there was a lack of qualitative studies in this area. A phenomenological approach was used for this qualitative research. Ten semi-structured interviews were conducted to deeply explore the participants' point of view, feelings and perspectives about mobile apps. The findings of the interviews confirmed three key advantages to using mobile apps as part of the participant’s employment: time saving, better customer conversations and faster decision-making. The data analysis isolated five key barriers: poor quality data, perceived value, ease of use, reduced customer understanding and mobile devices characteristics. Organisations wishing to speed the adoption of mobile apps by their employees should evaluate the importance and significance of these five identified barriers to adoption, and plan how to overcome them. |
| Keywords: | Technology adoption, Enterprise mobility, Organisational change, |
| Date: | 2015 |
| URL: | https://d.repec.org/n?u=RePEc:vuw:vuwmba:4934&r=mkt |
| By: | Mamello Nchake, Lawrence Edwards and Asha Sundaram |
| Abstract: | We study the relationship between price-setting behavior and the degree of competition in a setting where markets and information flows are relatively imperfect. Using a unique dataset that combines survey data on retail outlets in Lesotho, and detailed historical information on their product prices, we find a non-monotonic relationship between the frequency of price changes and perceived competition, measured by the number of reported competitors. This non-monotonic relationship is consistent with a model of increasing costs of coordinating price changes under tacit collusion with few competitors, and a breakdown of collusion at higher levels of competition. |
| Keywords: | price rigidity, Competition, Survey data, Micro price data, Emerging economies |
| JEL: | E30 D40 D22 L21 |
| Date: | 2015 |
| URL: | https://d.repec.org/n?u=RePEc:rza:wpaper:567&r=mkt |