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on Marketing |
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Issue of 2008‒11‒18
seventeen papers chosen by Joao Carlos Correia Leitao Technical University of Lisbon |
| By: | Micheels, Eric; Gow, Hamish |
| Keywords: | Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6484&r=mkt |
| By: | Kim, Hyeyoung; Ward, Ronald W.; Lee, Jong-Ying |
| Abstract: | Florida€ٳ citrus industry has a long history of using generic advertising as a primary instrument for shifting demand for various forms of citrus juices. Consumption behavior and consumer responses to these advertising are expected to substantially differ with each type of citrus juice These juices are classified into several groups defined as: frozen concentrated orange juice (FCOJ); refrigerated ready to- service not form concentrate (NFC); and refrigerated ready-to-service from concentrated orange juice (RECON). RECON comes from the fact that bulk concentrate has to be reconstituted into the ready-to-service form. While these juices may be substitutable, they fundamentally differ in both form and perception about the product attributes. Furthermore, the expectation is that demand for each juice type differs geographically because of the climate, economics, and demographics. Geographically, four U.S. regions are defined to be Northeast, West, South and North Central. Given the cost and marketing strategies needed, it is paramount that the industry understand any differences in demand across product forms and geographical market. Hence, the purpose of this study is to determine the demand and then measure the impacts of feature and display advertisements on the demand orange juice by form and market location. Feature and display ads are common methods for promoting orange juice as it is for many commodities. Specifically for the citrus industry, feature ads include best-food-day ads, store flyers, circulars, and other printed materials. Display ads include the display of the products in secondary locations, cut cases placed next to regular shelf location, and those displays in primary locations which give visual interest of the product in the store. With each media, the primary question is how much impact do these programs have on the overall demand for orange juice? Turning to established consumer demand models, these impacts are measured in this paper. A system of orange juice demand equations are estimated using the absolute price version of the Rotterdam model by Barten. The exact model is not specified at this point. The demand model is estimated with restrictions Engel aggregation, linear homogeneity,and symmetric assumptons imposed. Imposing advertising variables in a demand system, only adding up restriction involves the impact of advertising must be offset by demand decreases for other products to satisfy the budget condition as a result of demand increase for some products. Demand model is transposed to the differentiated terms based on the average values of the expenditures, prices, and quantities to simulate the impact of prices and advertising change on demand. The quantities and prices are included across regions, time, and product forms. |
| Keywords: | Demand and Price Analysis, Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6070&r=mkt |
| By: | Thompson, Stanley R.; Sam, Abdoul G. |
| Abstract: | The objective of this paper is to investigate the impact of media advertising on the US consumption of imported wine. A panel data of seven countries and twelve years from 1994-2005 is used to estimate the demand function for US wine imports. Our empirical analysis reveals evidence of strong price and advertising effects of domestic and imported wines on imported quantities; the advertising of imported wines significantly increases the quantity of imports while the advertising of domestic wines has a strong depressing effect on imported wine volumes. Our short-run import demand price and advertising elasticity estimates are -0.406 and 0.109 for imports and 0.654 and -0.370 for domestic wines, respectively. Other determinants such as population, real income and country specific fixed effects are also found significant. Based on our model estimates, we compute the marginal return to advertising to be $2.68 on average for the six importing countries and $3.40 for the U.S. |
| Keywords: | International Relations/Trade, Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6553&r=mkt |
| By: | Paulson, Nick; Katchova, Ani L.; Lence, Sergio |
| Keywords: | Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6080&r=mkt |
| By: | Morales, Luis Emilio; Fleming, Euan; Wright, Vic; Griffith, Garry; Umberger, Wendy |
| Abstract: | Meat Standards Australia (MSA) represents a new beef classification system, derived from consumer preferences, which allows classifying beef in interesting ways to consumers and creates the basis for product differentiation and branding. Currently, branding of beef cuts occurs on a limited scale; however, research has revealed clear segmentation across consumers and premiums for preferred products in niche markets. The objective of this study is to identify the potential for large-scale differentiation and branding in the Australian beef marketing system and how this may best be done given the structure of the supply chain. |
| Keywords: | Innovation, Branding, Australian beef marketing system, Livestock Production/Industries, Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare08:5993&r=mkt |
| By: | Katchova, Ani L. |
| Abstract: | The increasing use of agricultural contracts and processor concentration raises concerns that processors may offer lower contract prices in absence of competition from other local contractors and spot markets. This study examines the price competitiveness of marketing and production contracts depending on the availability of alternative marketing options. A propensity score matching method is used to compare prices using contract data from a farm-level national survey. The results show that the absence of other contractors or spot markets in producers€٠areas does not lead to significant price differences in agricultural contracts for most commodities, providing evidence that most agricultural processors do not exercise market power by reducing prices when other local buyers are not available. |
| Keywords: | alternative marketing options, local competition, marketing contracts, production contracts, agricultural prices, propensity score matching, Agribusiness, Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6336&r=mkt |
| By: | Ubilava, David; Foster, Kenneth A.; Lusk, Jayson L.; Nilsson, Tomas |
| Abstract: | Consumers' preferences for credence attributes of a product may differ from each other, when facing the choices between branded and/or non-branded products. We test this hypothesis with conditional and mixed logit regression using data obtained by choice experiment surveys. The results suggest that, on average, consumers are willing to pay more for a certification attribute when the product is branded. Additionally, greater variation in consumer willingness-to-pay is observed in the non-branded case. This latter characteristic of the results may represent the increased uncertainty some consumers internalize concerning quality consistency when brand information is not provided. These results have interesting implications for producers, processors, retailers, and policy makers. |
| Keywords: | Consumer/Household Economics, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6194&r=mkt |
| By: | Lee, Jonq-Ying; Brown, Mark G.; Knight, Erika P.; Chung, Rebecca H. |
| Abstract: | This study examined the impacts of retail promotions on the demand for five brands of orange juices for a retail chain (referred to as Retailer X) and its competitors using the Rotterdam model. Results show that the combination of feature ads and displays had the largest impacts on retail revenue among the four promotional tactics considered, while temporary price reductions had no additional advertising impacts other than price impacts on retail revenues. Results also show that when Retailer X promotes an OJ brand using any of the tactics studied, a larger portion of the increased demand for the promoted brand came from reduced demand for other brands of OJ in the same store and a smaller portion came from the decreased demand in competing stores in the same trading area. |
| Keywords: | Demand and Price Analysis, Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6699&r=mkt |
| By: | Martinez, Steve W. |
| Abstract: | This paper finds wide variation in brand premiums and discounts across types of branded beef cuts, ranging from -98 cents for a brand of ground beef targeting cost-conscious consumers to $4.15 for a brand of steak produced by a family-operated beef alliance. Other factors affecting beef cut prices include package size, price promotions, store format, ground beef leanness, type of steak cut, and geographic region where the beef was purchased. |
| Keywords: | Livestock Production/Industries, Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6455&r=mkt |
| By: | Gustafson, Christopher |
| Abstract: | Recent research on consumer behavior has indicated that, contrary to most models in economics, information can affect consumers' subjective experience with a good. When consumers receive information about the quality of a good before experiencing the sensory characteristics of the good, the consumers' stated preferences for the goods have been affected. However, a study has yet to examine whether this affects consumers' purchasing decisions, or is limited to stated preference. This field experiment looks at the release of appellation information prior to and after tasting of wine, and uses sales of the two wines tasted as a dependent variable. |
| Keywords: | Food Consumption/Nutrition/Food Safety, Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6256&r=mkt |
| By: | Innes, Brian G.; Kerr, William A.; Hobbs, Jill E. |
| Keywords: | branding, marketing, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:catptp:43470&r=mkt |
| By: | Spaulding, Aslihan D.; Schmidgall, Timothy J. |
| Abstract: | Growing concerns about the dependence on foreign oil and high prices of gasoline have led to rapid growth in ethanol production in the past decade. Unlike earlier development of the ethanol industry which was highly concentrated in a few large corporations, recent ownership of the ethanol plants has been by farmer-owned cooperatives. Not much is known about the marketing and purchasing practices and plants€٠flexibility with respect to adapting new technologies. The purpose of this research is to fill the gap in knowledge on these practices and to test whether the practices differ with the size and type of ownership. |
| Keywords: | ethanol, marketing, input procurement, technology, Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6457&r=mkt |
| By: | Jang, Jonglck; Sykuta, Michael |
| Abstract: | Achieving consistency in hog quality has been one of the greatest challenges in the US pork industry. Packers, processors and retailers all ranked lack of uniformity in live hogs, carcasses, and retail cuts with regard to size and backfat as the most important quality issue facing the industry in the mid 1990s (NPPC, Pork Quality Audit, 1994), and quality consistency continues to be a leading industry concern (Martinez and Zering, 2004). The past 15 years have also witnessed dramatic changes in the organization of the US hog industry. In 1993, over 82% of hogs were sold through spot markets while 11% were sold under marketing contracts. By 2005, only 11% of hogs were sold through spot markets, with 67% sold under marketing contracts and over 20% owned by packers through formal integration or production contracts. This change in industry structure has not gone unnoticed by agricultural economists. A large body of literature examines the relations between hog quality and newly developed organization modes, particularly production contracting and vertical integration. A variety of theoretical frameworks and empirical approaches have been employed, whether using surveys (Kliebenstein and Lawrence, 1995), simulation techniques (Poray, 2002), contract document analysis (Martinez and Zering, 2004), and quality outcome analysis (Muth, et al., 2007). However, research focusing on production contracts and formal vertical integration fails to address the dominant institutional form, namely marketing contracts. Likewise, research focusing on market-based incentive mechanisms fails to provide a consistent explanation for the use and design of long-term hog marketing contracts. We propose a theoretical explanation for the use of long-term marketing contracts in the presence of buyer-specific quality attributes in an otherwise commoditized industry. This theoretical framework draws from and builds upon existing theories of contracting and organizational economics. In particular, the paper develops an analytical model that accounts for the use and structure of long-term marketing contracts to increase intertemporal quality consistency in hog procurement. The paper links the packer€ٳ decision to move from spot-market transactions to long-term marketing contracts to the packer€ٳ downstream product differentiation strategy. We provide empirical evidence to support the model and its explanatory power relative to existing theories. |
| Keywords: | Livestock Production/Industries, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:5966&r=mkt |
| By: | Hufton, Charlie; Griffith, Garry; Mullen, John |
| Abstract: | Previous research has found inconsistencies in the valuation of weight and fat characteristics of lamb carcasses between the saleyard and wholesale markets. In this paper, recent New South Wales saleyard and wholesale price data on different classes of lamb are analysed using hedonic methods to determine the relative influence of weight and fat on prices received. Fat score 2 lambs are heavily discounted relative to fat score 3 lambs, and there are significant seasonal price differentials, but there are no significant premiums or discounts for weight or other fat characteristics. These results hold for both the saleyard and wholesale markets. The implication is that the efficiency of price discovery in the Australian lamb market has improved a little in recent years in the sense that premiums and discounts are now consistent across market levels. However consumers€٠stated preferences for large lean lambs are not being reflected in price incentives generated in the live lamb and lamb carcass markets. |
| Keywords: | lamb, marketing, hedonic models, carcass characteristics, Demand and Price Analysis, Livestock Production/Industries, Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare08:6021&r=mkt |
| By: | Liang, Jing; Jensen, Helen H. |
| Abstract: | Recent outbreaks of food-borne illness related to fruit and vegetables have led to increased concerns about the safety of produce. In response, the industry has adopted marketing agreements to ensure consistency of product safety. Contracts now are widely used between processors and growers to specify product safety attributes. This paper uses a principal-agent model to examine how the inclusion of a marketing agreement influences the behavior of growers and processors under processor-grower contracts. We conclude that: (1) the processor offers a contract with a higher premium and a lower base payment under the contract with a marketing agreement (2) contract parameters change in similar manner under the two contracts (3) under a contract with a marketing agreement the processor earns less profit. The individual contract scenarios are discussed in detail. |
| Keywords: | contract, food safety, principal-agent, market agreements, GAPs, on-farm inspection, Food Consumption/Nutrition/Food Safety, Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6434&r=mkt |
| By: | Jones, Eugene |
| Abstract: | This study used supermarket scanner data to analyze purchase behavior for higher- and lower-income shoppers in six stores in Columbus, Ohio. Three higher- and three lower-income stores are selected and consumer purchases are observed for 17 varieties of apples. The results show that lower-income shoppers pay lower per unit prices for most varieties of apples. More importantly, these purchases are made without sacrificing quality for a lower price. |
| Keywords: | Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea08:6433&r=mkt |
| By: | Cuthbertson, Bron; Marks, Nicki |
| Abstract: | This paper presents the findings of research on emerging global trends in consumer food preferences with credence attributes. Credence qualities cannot be evaluated in normal use. Instead the assessment of their value requires information sought through the search and experience of a product (Darbi & Karni, 1973). Key trends identified were Health and wellness foods, environmentally sustainable and ethical food production. Key drivers for these trends are corporate social responsibility, media, obesity, technology, an aging population and consumers' environmental attitudes. Conditions to operate in this market are traceability, food safety, trust, accreditation, labeling and branding. |
| Keywords: | Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, International Relations/Trade, Marketing, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare08:5980&r=mkt |