|
on Marketing |
| By: | Amedeo Piolatto (Universitat de Barcelona & IEB) |
| Abstract: | Online review aggregators (e.g., booking.com or ClubKviar) provide detailed information about experience goods, such as restaurants and hotels. This study fosters the understanding of how such aggregators modify competition, profits and welfare. Using a spokes model of horizontal competition, I show that review aggregators enhance total welfare mainly by making valuable information available to consumers. The effect on welfare goes through different channels: 1) realised transactions are more valuable for the match between producers and consumers is more accurate; 2) the costumer base enlarges, for more agents find a suitable product; 3) the equilibrium price weakly decreases for competition amongst firms is more intense. However, firms face a prisoner dilemma: firms best response to the status quo is to appear on the aggregator's web so as to enlarge their market share, however, this leads to lower profits than if they all agreed not to use the aggregator. |
| Keywords: | Horizontal competition, spokes model, welfare, review aggregators, online booking, ClubKviar, experience goods, mismatch costs |
| JEL: | D43 D61 D83 L11 L13 L15 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:doc2015-11&r=mkt |
| By: | Ronalds Skulme (University of Latvia); Valerijs Praude (University of Latvia) |
| Abstract: | Background. There are many methods how specialists can evaluate return of online marketing activities. Most of the methods out there are designed for versatile use. But each online marketing tool has its own unique specific metrics that should be taken into account when measuring the return of marketing activities. Authors believe that the methods that are designed to evaluate online marketing activities should also be more specific. Hence authors believe that more specific online marketing revenue determination methods should be proposed. Objectives. The aim of this paper is to propose a formula that can be used to evaluate the return of social media activities depending on consumer purchase decision process stage the online marketing activity was meant to influence. Methodology. To achieve the aim of this paper, following research methods were used: theoretical literature analysis, expert surveys, grouping and statistical analysis methods. Data. The proposed formula was based on the data that was collected from theoretical literature analysis and expert surveys. Results. The main result of this paper was to propose a formula, which can determine the return of social media activities based on purchase decision process stage the social media activity was meant to influence. Main contribution of the paper. This paper offers a new approach how to evaluate return of social media activities depending on which purchase decision process stage online marketing activity was meant to influence. This paper can be used as a basis for further researches where social media activity revenue evaluation methods are discussed. Marketing specialists can use this paper as an example how to evaluate return of social media activities. |
| Keywords: | social media marketing, social media metrics, social media evaluation, consumer purchase decision process |
| JEL: | M31 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no103&r=mkt |
| By: | Tomasz Galewski (Wroclaw University of Economics) |
| Abstract: | Until recently, Internet was considered as technology that will make the trade in goods frictionless. Online retailers’ margins were to fall to zero and prices - according to theory of economics - were to equalize as a result of buyers comparing prices more easily (e.g. using shop bots). Empirical research performed so far has not proven these expectations right. Studies in many countries show that online prices vary significantly (sometimes price dispersion in the Internet is higher than that in traditional trade). The purpose of this article is to present a critical view on the methods of measuring price dispersion in e-commerce. Researchers of this area use different measures of price differentials, include shipping costs or not, use the proposed price or try to determine transaction prices, reject part of the data considered as outliers that may indicate a hidden heterogeneity of a product. Some scientists also try to justify price dispersion with the reputation of a vendor, and also additional features of the sellers such as the amount of information presented in the offer, convenience of shopping, user-friendly interface, etc. All these factors are problematic for the research due to lack of a clear (and proper) way of measuring the mentioned attributes. Most of the previous studies also ignored the pricing strategy of vendors, which is a very important factor for price dispersion – it may involve reduction in prices of several products in order to attract customers to the store to buy other products with a much higher margin. |
| Keywords: | price dispersion, e-commerce, shopbots |
| JEL: | D40 D82 D83 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no50&r=mkt |
| By: | Tim Burnett |
| Abstract: | This paper empirically analyses the impact of the bundling of four common home communication services with a single supplier on the probability that an individual changes supplier using a survey-elicited dataset of 2,871 individuals. Implementing a random effects probit approach to control for individual heterogeneity, the results strongly show that when individuals bundle their service then they are significantly less likely to change supplier. A second result indicates that service- and supplier- related variables are better predictors of an individual's likelihood of switching than are the characteristics of the individual, suggesting that future research in this area should prioritise their inclusion. |
| Keywords: | Bundling, Consumers, Panel-data, Regulation, Switching, telecommunications |
| JEL: | C3 C5 D1 L5 L8 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:bri:cmpowp:14/321&r=mkt |
| By: | Danuta Szwajca (Silesian University of Technology, Poland) |
| Abstract: | In order to determine the competitive position of a company not only the traditional measures of market position (market share) and financial position (financial ratios) are used but also the qualitative measures concerning intangible resources. Customer satisfaction and customer loyalty are the two most commonly applied qualitative measures. Due to the growing importance of intangible resources, and of reputation in particular, the need arises to use the reputation indicator as a measure of competitive position in achieving a long-term competitive advantage and building the enterprise value. The purpose of this article is to identify the competitive position indicated by the level of corporate reputation in comparison with the customer loyalty indicator and the most popular traditional measures based on the example of banking sector. For calculation of qualitative measures the method of survey was used, conducted among the retail banking customers. The study showed a weak relationship between reputation and loyalty: the banks that received the highest ratings of reputation, obtained the poorest results in terms of loyalty. Due to the limited subjective and methodological scope of research, the results cannot constitute a sufficient basis to prove this thesis, however, they may constitute a good starting point for conducting broader research in this area. |
| Keywords: | reputation, customer loyalty, competitive position, banking sector |
| JEL: | G21 L14 L25 M31 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no113&r=mkt |
| By: | Laurent Bouton; Georg Kirchsteiger |
| Abstract: | Rankings have become increasingly popular on various markets, e.g. the market for study programs. We analyze their welfare implications. Consumers have to choose between two goods of unknown quality with exogenous presence or absence of an unbiased informative ranking. The existence of the ranking might affect the welfare of all consumers negatively. With rigid prices, the ranking induced change in demand can be detrimental to all consumers in markets featuring rationing or consumption externalities. With perfectly flexible prices, the ranking might increase firms' market power, and hence lead to losses for all consumers even in the absence of rationing and consumption externalities. |
| JEL: | D8 L15 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21083&r=mkt |
| By: | Pierre-Nicolas Schwab; Laurence Rosier; Sandra Rothenberger |
| Abstract: | Marketing scholars have used justice theory to investigate how consumers’ perceptions affect post-complaint satisfaction. Less attention has been given to how those perceptions are formed and what organizations should do to enhance them. This paper explores the concept of politeness, a component of interactional justice, in a complaint handling setting, with two complementary studies: a quantitative discourse analysis, and a survey. In study 1, the effects of 16 antecedents of politeness in a dataset of naturally occurring firms’ responses to customers’ complaints are investigated. Results show that Face-Threatening-Acts (FTAs) are better predictors of perceived politeness than antecedents previously used in marketing research. Study 2 explores the consequences of politeness with a survey demonstrating that politeness is positively correlated with repurchase intention and perceived firm professionalism. |
| Keywords: | Complaints; politeness; professionalism; theory of face; Grice’s maxims |
| JEL: | M31 |
| Date: | 2015–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/197891&r=mkt |
| By: | Malgorzata Rutkowska-Podolowska (Wroclaw University of Technology); Nina Szczygiel (University of Aveiro); Grzegorz Podolowski (Gestamp Wroc³aw sp. Z o.o.) |
| Abstract: | Evidence from research has not only excluded negative consequence related to moderate consumption of wine, but associated consumption of skin, juice and seeds of grapes in any stage with a protective impact on health. Compounds of wine demonstrate anti-cancer, antioxidant and a defensive for the cardiovascular system results. The “French paradox” proves that the French suffer from 40% less heart attacks than the Americans consuming 30% more fat what is due to diet including regular modest amounts of wine. The central aspect of this logic is to turn a growing interest in wine consumption for health benefits into innovative solutions with different approaches and make for this purpose also use of areas that have undergone significant transformations over last decades as a results of global dynamical change which offer new consumption patterns seen now as driving forces for stagnating economies of the XXI century. In an attempt to face this interesting tendency, we conducted a study aiming at determining wine consumption patterns in light of overall alcohol consumption and the dimension of health attitudes with perception and awareness of positive effects of moderate amounts of wine consumption on human health. Results demonstrate a still limited consumption of wine in Poland, also for health-related purposes, although a high consciousness of its benefits and application in medicine indicating an increasing awareness in this matter. |
| Keywords: | vinoteraphy; wine consumption; health attitudes; cardiovascular system; innovation |
| JEL: | I12 O13 O30 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no94&r=mkt |
| By: | Fátima Gomes (Hospital de S. João); Teresa Proença (CEF.UP, Faculdade de Economia, Universidade do Porto) |
| Abstract: | This study aims to assess nurses’ motivation and satisfaction and measure the impact of socio-demographical and socio-professional variables, namely professional contract. A questionnaire was delivered to a sample consisting of 560 nursing professionals of the second major Hospital in Portugal, Hospital São João (HSJ): 277 nurses on public contract, 173 on open ended contract and 110 on fixed term contract. Results show that the relationship with the patients is the most important factor for nurses’ satisfaction, followed by satisfaction with the job content. Remuneration is the factor in which nurses show the least satisfaction. Nurses with a fixed contract, the most insecure of all, are the ones with greater motivation and satisfaction, contrary to what is expected according to content motivational theories. However, they also have greater expectation that their performance can improve their contract, what may explain the previous results. This paper also suggests that work and the type of contract has an impact on personal life and vice-versa, namely on the intent of leaving the job, on the marital status and the number of children. |
| Keywords: | motivation, satisfaction, nursing, professional contract |
| JEL: | J28 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:558&r=mkt |
| By: | Justyna Kufel (Institute of Agricultural and Food Economics – National Research Institute) |
| Abstract: | Agri-food sectors are commonly considered as highly regulated, traditional and of strategic importance, mainly due to the food security issues. Changes in the related market structures are subject of constant interest because of their importance for competition and economic welfare of food producers and consumers. In Poland, a rising concentration among various branches of the food industry can be observed. The main objective of the article was to depict the changes of the market power execution in the Polish food sector and its branches in the period 2002-2013. As a measure of this phenomenon the markups of price above the marginal cost were applied and for their estimation two methods were used, namely the Roeger method involving primal and dual Solow residuals and the method based on the marginal cost of labor. Yearly data for 32 food sector branches and various accounting categories were used in the calculations. It was found that in the analyzed period the markup over marginal cost on average amounted to 10.4% and it was increasing over time. The labor input category seemed to be not sufficient for the markup calculation. The evolution of the monopolistic power in the Polish food sector appears to be associated not only with the business cycle, but also with the sector developments accelerated by the accession to the EU. Moreover, the differences in results for the branches indicate a considerable heterogeneity in the Polish food industry companies pricing practices. |
| Keywords: | markups fluctuations; Polish food sector; market power |
| JEL: | L11 L66 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no69&r=mkt |