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on Marketing |
| By: | Castellari, Elena; Moro, Daniele Daniele; Platoni, Silvia; Sckokai, Paolo |
| Abstract: | Using a panel data set on the yogurt market for four hundred points of sale in Italy, we investigate, at the segment level, the interactions between private label (PL) market shares and national brand (NB) leader’s prices. We estimate a reduced form model which controls for the heterogeneity of point of sales and time using a two way fixed effect (FE) error components model (ECM). Consistently with several theoretical findings available in the literature, we expect retailers to use PL to discriminate prices among different groups of consumers. The analysis, however, shows not all segments of the market are influenced by PL shares. Specifically, for the most dynamic segments (functional and yogurt with snack), Pl shares are on average smaller and NB leader’s prices are not affected by their presence. Differently, in the most traditional segments (whole and skimmed yogurt), where PL exhibits on average a sizable presence, the analysis shows a positive effect between PL shares and NB prices. Results suggest leader’s product innovation and product introduction dynamics might play a role on retailer’s power to influence NB leader’s prices, retaining PL development. |
| Keywords: | Private Label, Dairy market, Price Competition, Agribusiness, Marketing, Q13 D40 L11, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aiea14:173020&r=mkt |
| By: | David P. Byrne, "; " Gordon Leslie |
| Abstract: | This paper empirically studies howconsumers respond to retail gasoline price cycles. Our analys is uses new station-level price data from local markets in Ontario, Canada, and a unique market-level measure of consumer responsiveness based onweb traffic fromgasoline price reportingwebsites. We first document how stations use coordinated pricing strategies that give rise to large daily changes in price levels and dispersion in cycling gasoline markets. We then show consumer responsiveness exhibits cycles that move with these price fluctuations. Through a series of tests we further show that forward-looking stockpiling behavior by consumers plays a central role in generating these patterns. |
| Keywords: | Retail gasoline price cycles; Dynamic demand; Consumer search |
| JEL: | L11 L9 D22 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:mlb:wpaper:1176&r=mkt |
| By: | X. Henry Wang (Department of Economics, University of Missouri-Columbia); Chenhang Zeng (Research Center for Games and Economic Behavior, Shandong University) |
| Abstract: | We study advance selling in a model with a capacity constraint for the seller and in the presence of both consumer heterogeneity and demand uncertainty. Buyers face different levels of uncertainty about their valuations in the advance selling period: one group (called informed buyers) now their individual valuations while the other group (called uninformed buyers) only know the distribution of their valuations. We find that the seller¡¯s optimal pricing strategy depends on his capacity size as well as the size of informed buyers. For a small capacity size, the Constant Price strategy with the highest possible price is adopted. For sufficiently large capacity sizes, both Advance Purchase Discount and Advance Purchase Premium strategies may be optimal. In general, the larger the size of informed buyers the more likely an Advance Purchase Premium strategy is adopted. |
| Keywords: | advance selling, capacity constraint, consumer heterogeneity, demand uncertainty. |
| JEL: | D42 L12 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:shn:wpaper:2014-04&r=mkt |
| By: | Bonanno, Alessandro; Castellari, Elena; Sckokai, Paolo |
| Abstract: | In this paper we assess the impact of the LD 114/1998 on the structure of the Italian food retailing industry. We use difference–in–difference technique, comparing the level of concentration, number of stores, average store size and level of service offered to consumers in regions enacting mandated consistent with the LD 114/1998, versus those that did not. Results show that, once the endogenous nature of policy changes is controlled for, the policy appears more effective than expected, in terms of its impact on concentration, consumers’ access, store size and level of service to consumers. While the decree overall seems to have help the consumer to have more access and more in-store services, our analysis suggests food retailing became more concentrated in response to the implementation of the LD 114/1998. Further, the effect of the liberalization seems to have stronger effects in regions where the level of liberalization implemented is “low”. |
| Keywords: | Food Retailer Structure, Trade Liberalization, Industrial Organization, Marketing, L81 L22 L52, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aiea14:173090&r=mkt |
| By: | Hideki MURAKAMI (Graduate School of Business Administration, Kobe University); Yoshihisa AMANO (Graduate School of Business Administration, Kobe University) |
| Abstract: | We analyzed the dynamic changes in carriers' airfares and outputs and computed the changes in the consumers' surplus year by year after new Japanese carriers entered thriving routes and started to compete with Japanese full-service airlines (FSAs). Using unbalanced panel data of 222 route-and-carrier-specific sample observations, we found that new carriers discounted airfares significantly as soon as they entered new markets, but two early-comers, Skymark Airlines and AIRDO that had entered with very low airfares raised their price year by year.The two FSAs All Nippon Airways and Japan Airlines responded to the new entrants and lowered their airfares to a much lesser extent than new entrants did, and kept their airfare levels almost unchanged for at least four years from the first entry, although a tiny fluctuation of airfares was recognized. The consumers' surplus increased significantly in the first year of new entries but gradually reduced as new entrants raised their airfares. |
| Keywords: | Japanese airlines, entry, dynamic change in airfare, consumers' surplus |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:kbb:dpaper:2013-31&r=mkt |