Market Theory Research Articles

Pricing Decisions for Competitive Ride-Hailing Platforms with the Combination of Inner-Group and Inter-Group Network Externalities

Based on two-sided market theory, this paper has studied the pricing problem of ride-hailing platforms with a combination of inter-group network externality and inner-group network externality. Two scenarios of user structure are considered. In scenario 1, both travellers and drivers are single-homing. In scenario 2, travellers are single-homing while drivers are multi-homing. Moreover, time sensitive factors and driver’s commission rate are introduced to reflect the characteristics of transport industry. Finally, the impact of network externality, time sensitivity, driver’s commission rate and entry cost on ride-hailing platform pricing, user scale and profits are analysed. The results show that inter-group network externality and inner-group network externality have a negative effect on platform prices charged to both travellers and drivers. However, when travellers are multi-homing, the price charged to travellers is positive with respect to the inter-group network externality from drivers. In the relationship between travellers’ scale and inter-group network externality, inner-group network externality is positive. Further, in both scenarios, the network externalities from the two sides affect platform profits negatively.

Content of Regional Library Communities on the VKontakte Social Network

Social networks are one of the platforms for posting official content and interacting with users, as well as providing remote access to information resources. The purpose of analyzing the content of communities in the VKontakte social network of the Oryol regional libraries (public, children’s and special) was to identify the structure and typology of communities, their characteristic features, and types of labels. The reason for choosing the accounts of regional libraries as the object of research was the social function they perform: regional libraries are the flagships of the development of the library system of a certain territory. The popularity of publications in communities was measured using the Engagement Rate coefficient. A direct correlation has been revealed between the type of publication and its popularity: the more popular the publication, the more publications of this type are posted in the community. For more effective functioning of library communities, it is necessary to develop a content plan that is based on the theory of management and marketing of social networks.

Study on the Impact of Korean Wave in China and Indonesia on Cosmetic Product Image and Purchase Intention

The cosmetics industry in Korea, which exports have recently grown rapidly, can be said to have been influenced by the continued Korean Wave overseas. However, based on the experiential marketing theory that connects to value relationships with customers, there is very little analysis of the impact of the Korean Wave on the image and purchase of Korean products. This study empirically analyzed the impact of the Korean Wave on cosmetic product image and product purchase intention among 260 Chinese and Indonesian female consumers by the structural equation models using AMOS 26.0. Among the sub-factors of experiential marketing, feel experience, sense experience, think experience, and act experience had a significant effect on cosmetic product image and purchase intention, but relate experience had no effect. A comparison between the two countries showed a significant difference. In China think experience and sense experience had a significant impact on the cosmetic product image, but in Indonesia sense experience and relate experience had a significant impact on the cosmetic product image. The impact of cosmetics product image on purchase intention was greater than that of other experience factors in both countries, while China had a slightly greater influence than Indonesia. The results of this study can be used to improve the image of cosmetic products and promote sales promotion policies using the Korean Wave. Since the impact of the Korean Wave varies depending on the country, local culture and characteristics must be taken into consideration or differentiated Korean Wave promotion policies must be implemented.

The Arm’s Length Principle – An Adequate Means for Taxing Multinational Corporate Groups?

Abstract International tax law is characterized by the arm’s length principle. However, the arm’s length principle is highly criticized since it is seen as a major driver of tax avoidance. Although the OECD’s Two-Pillar Solution and EU initiatives seem to indicate that international tax law is in a state of change, the arm’s length principle remains relevant. Therefore, we deal with the question whether it is possible to improve the arm’s length principle. While previous attempts ask, for example, whether it is possible to reduce its complexity, we focus on the aspect that the OECD Transfer Pricing Guidelines do not refer to a theory of the formation of prices in transactions between independent parties. We advocate developing a theoretical substantiation and introduce a new interpretation of the arm’s length principle, based mainly on concepts of a general evolutionary theory and political-cultural market theory. This reference to an adequate market theory leads us to a new interpretation of the arm’s length principle that differs considerably from the current interpretation. Still, we doubt that this new interpretation of the arm’s length principle alone can reduce tax avoidance significantly. However, understood as one instrument in a mix of instruments, we estimate that this interpretation of the arm’s length principle constitutes a more adequate means for fighting tax avoidance of multinational corporate groups than its current interpretation.

Developing non-traditional firm-specific advantages in domestic strategic factor markets: evidence from China

PurposeChinese firms are winning market share from foreign multinational enterprises in domestic markets. The international business literature suggests that this is happening because these firms are developing non-traditional firm-specific advantages (FSAs). Strategic factor market (SFM) theory provides a good basis for explaining how this is happening. However, it is underdeveloped in terms of analysing unique resources and unique access to those resources by Chinese firms in their domestic markets. This paper aims to develop a framework to understand how Chinese firms have developed non-traditional FSAs.Design/methodology/approachThe case study method is adopted to explore how Chinese firms develop non-traditional FSAs. Specifically, the authors compare paired case studies of a Chinese firm and a foreign multinational in each of two industries.FindingsThe authors find that Chinese firms have developed non-traditional FSAs because of more relevant experience, better adapted strategies and privileged relationships. This has enabled Chinese firms to develop non-traditional FSAs.Originality/valueThe authors propose a framework that conceptualises non-traditional FSA development in Chinese firms as a product of superior access to unique and valuable resources in their domestic SFMs.

Intersection of Islamic Values and Consumer Preferences

This study aims to explore the intersection of Islamic values and consumer preferences within the realm of marketing, particularly focusing on the implications for businesses operating in Muslim-majority markets or targeting Muslim consumers worldwide. The research design adopts a qualitative approach, utilizing thematic analysis to synthesize recent literature on Islamic marketing and consumer behavior. The findings reveal that Islamic principles such as halal authenticity, ethical considerations, and cultural sensitivity significantly influence consumer decision-making processes across various product categories. Additionally, the study highlights the growing importance of understanding the impact of technological advancements, regulatory developments, and socio-cultural shifts on consumer behavior and market dynamics within the context of Islamic marketing. The implications of these findings underscore the need for businesses to prioritize halal authenticity, ethical sourcing, and cultural sensitivity in their marketing strategies to build trust, credibility, and loyalty within Muslim communities. This study contributes to the advancement of theory and practice in Islamic marketing, informing strategic decision-making and promoting inclusive and ethical approaches to consumer engagement in the global marketplace.

FAKTOR-FAKTOR YANG MEMPENGARUHI MINAT MAHASISWA UNTUK BERINVESTASI DI PASAR MODAL

Investment in the capital market can be used as an alternative to investing for people who want to invest their money and contribute for economic growth in a country. However, the number of investors in Indonesia in quantity is still far from the population in Indonesia. This study aims to analyze the factors that influence the interest in investing in the capital market. This research was located at the Faculty of Economics and Business, Udayana University with students of 2018-2019 who had attended the capital market theory course as a population. The sampling technique used was purposive sampling and the sample obtained was 233 respondents with a data analysis technique, namely multiple linear regression analysis. The results of this study indicate that investment knowledge, motivation, family environment and financial literacy have a positive effect on investment interest in the Capital Market.

Somehow bogged down: why current discussions on measuring HEI reputation go round in circles, and possible ways out

ABSTRACT Measuring and managing reputation is one of the core challenges for higher education institutions (HEIs). Although research and theory in higher education marketing has been addressing this key issue for decades, a clear picture of how to capture and monitor the reputation of higher education institutions has not emerged. As a result, recommendations on how to apply systematic reputation management in the HEI setting are lacking. We review traditional conceptualizations of the construct of reputation, identify common challenges to reputation measurement, and examine their application in higher education settings. Bringing together the baselines from these fields, we argue along four main lines that recommending a theoretically acceptable way to capture HEI reputation is tantamount to an unsolvable task. As a solution to the impasse, we call for an exploration of altered perspectives on reputation measurement for the HEI context. Increased consideration of relevance and departures from existing attempts are two issues that are particularly addressed. To advance the theory and encourage new thinking, we develop several lines of research that we hope will inspire further work in this important area and move the field toward more applicable solutions.

Fission-like Expansion of Consumer Groups: The Market Form of the E-commerce Platform "New Retail" Take Pinduoduo as an Example

In the wave of the Internet economy, the use of effective marketing strategies is particularly important for new e-commerce companies. Taking Pinduoduo as an example, based on literature analysis and case analysis, this paper concludes that Pinduoduo uses fission marketing to rapidly expand user clusters and improve user viscosity through various fission marketing activities, successfully shaping a low-cost and affordable brand image. Although fission marketing has shortcomings such as excessive dissemination of information and security risks of leaking users' personal information, it is still an important reason for Pinduoduo's success. Based on the negative impact of fission marketing, this paper argues that e-commerce platforms should first control the excessive dissemination of information and improve the protection of user information, and secondly, each enterprise should formulate a fission marketing plan according to its own specific conditions. Finally, this paper puts forward ideas for the in-depth study of fission marketing theory.

Forecasting VaR and ES by using deep quantile regression, GANs-based scenario generation, and heterogeneous market hypothesis

Value at risk (VaR) and expected shortfall (ES) have emerged as standard measures for detecting the market risk of financial assets and play essential roles in investment decisions, external regulations, and risk capital allocation. However, existing VaR estimation approaches fail to accurately reflect downside risks, and the ES estimation technique is quite limited owing to its challenging implementation. This causes financial institutions to overestimate or underestimate investment risk and finally leads to the inefficient allocation of financial resources. The main purpose of this study is to use machine learning to improve the accuracy of VaR estimation and provide an effective tool for ES estimation. Specifically, this study proposes a VaR estimator by combining quantile regression with “Mogrifier” recurrent neural networks to capture the “long memory” and “clustering” properties of financial assets; while for estimating ES, this study directly models the quantile of assets and employs generative adversarial networks to generate future tail risk scenarios. In addition to the typical properties of financial assets, the model design is also consistent with heterogeneous market theory. An empirical application to four major global stock indices shows that our model is superior to other existing models.

Bridging the gap: Connecting sport marketing theory and practice via an experiential sponsorship activation learning assignment

The integration of experiential learning in sport management classrooms has seen increased attention due to the need for practical experience in the sport industry (Barnes, 2014; DeLuca & Fornatora, 2020). Experiential learning in collegiate classrooms provides students with the opportunity to bridge the gap between theory-based knowledge and real-life experiences (DeLuca & Fornatora, 2020). Furthermore, this pedagogy has the potential to enhance students' resumes and boost job satisfaction in sport industry positions (Brown et al., 2018; Foster & Pierce, 2021; Wanless et al., 2016). Sponsorship activation has become a legitimate element of the marketing mix and encompasses a large portion of marketing budgets for companies (O'reilly & horning, 2013). With that being said, sport marketing graduate students at a Southwestern University engaged in a sponsorship activation project for one of the school's major athletic sponsors as part of their sport marketing class. The experiential learning opportunity provided students with real-world examples of sport marketing while providing them with a sponsorship activation experience. The project received positive feedback from students including their appreciation for the practical experience.

On-screen tourism and destination development: a sociocognitive approach

ABSTRACT This study develops a new conceptual framework, called the “sociocultural market wheel” of tourism destinations, to establish on-screen tourism as an integrated part of destination development, rather than a peripheral voice or an ad-hoc niche element. To do so, this study applies the sociocognitive product market theory, which has been well established in the field of management in the recent years. This study argues that on-screen place-making representations impact tourism destination development through a continuous, mutual and two-way sensemaking and sensegiving process between film industry storytellers and internal and external destination shared conceptual systems, which is grounded around the exchange of multi-level stories, what has been also described as “serial narratives” that contain destination-related myths. The main aims of the study are, first, to build on recent literature on on-screen tourism that is taking a popular culture, rather than a destination or tourist, perspective and, second, to inform destination practitioners and DMOs that they need to monitor, interpret and analyse the stories and serial narratives that the film industry produces about the destination, to be able to proactively drive sustainable destination development and avoid the risks of touristification.

AI-Assisted Formal Buyer-Seller Marketing Theory

Customer behavior, market dynamics, and technological advances have made it challenging for marketing theorists to provide comprehensive explanations and actionable insights. Although there are numerous substantive marketing frameworks, no formal marketing theory exists. This study aims to develop the first formal grounded theory in marketing by incorporating artificial intelligence and Forde's conceptual framework as a guiding lens. Charmaz's constructivist grounded theory tradition and Forde's conceptual framework and data analysis strategy were employed for this purpose. The data analysis strategy used with grounded theory‘s constant compare-and-contrast method comprises holistic and systems thinking, dramaturgical and situational analysis, perspective-taking, and deconstruction. To evaluate Glaser‘s assertion that all is data, artificial intelligence was incorporated into the research as the data source for retrieving the theoretical samples to address the primary research question: How can Forde's conceptual framework and artificial intelligence be leveraged to develop a formal marketing theory grounded in evidence? Of significance was the emergence of democratic marketing behaviors and the normalization of anti-democratic marketing approaches leveraged to manipulate buyers or gain access to segments of customers. Buyers and sellers can simultaneously benefit from and be prejudiced by marketing exchange dynamics. This finding lends credibility to the newly emerged framework of strategic actions where empowerment and disempowerment are leveraged to achieve specific goals. Considering this finding, it is suggested that businesses view marketing as a symbiotic relationship between two power centers, buyers, and sellers, who respectively strive to maintain human dignity and sustainability. Researchers are encouraged to apply the framework across substantive areas, international markets, public relations, political campaigns, and others.

Research on Strategies to Improve Digital Literacy of College Students to Enhance Employment Quality in the Intelligent Era

Abstract With the intensification of social employment pressure, the employment conflict of vocational college students has gradually shifted from quantitative to qualitative. The theoretical mechanism and path of the impact of digital literacy on the employment quality of vocational college students are explored through the combination of human capital and labor market theories in this study. In this paper, the digital literacy is used as an independent variable based on the employment quality as the dependent variable. The relevant control variable is set up, and the multivariate regression model is constructed. Finally, a questionnaire survey was conducted on college graduates in Jiangxi, and the influence and mechanism of digital literacy on the employment quality of college graduates were explored through a multiple regression analysis model. The results show that the regression coefficients of digital literacy of vocational college students are always positive, after all the control variables are included in the regression, the regression test coefficient of digital literacy level in the model (6) are, R2=5.15, P<0.001.

Embracing Social Media as Business Marketing Tool: Its Use, Opportunities, and Challenges for Micro Businesses

The purpose of this study was to analyze the use, opportunities, and challenges of micro-business marketing tools. A valuable marketing tool for micro businesses looking to engage clients and build their business. Social marketing theory aims to merge marketing ideas, principles, tools, strategies, and socially useful concepts to enhance communication and benefit society. This study used a descriptive quantitative research method, with 246 participants filling out survey questionnaires and sharing their thoughts on the usage of social media in micro-business. To provide an overview of impact assessments, a quantitative and subjective questionnaire created by the researcher was employed. Furthermore, the study found that micro-business owners strongly recognize Social media as a powerful tool for micro-business, recognizing its positive impact on business growth, cost reduction, and customer service improvement, and despite acknowledging persistent challenges such as competition and trust issues, the finding emphasizes the potential for Social media to create new opportunities.

Collusion Indicators in the GameStop Short Squeeze


 
 
 A new theory and model of the stock market that incorporates decision noise in the spirit of behavioral economics, collaboration in the spirit of experimental economics, and financial data and features in the spirit of econophysics is used to support a theory from 2005 that stock-market collusion should lower the level of stock-market decision noise - i.e., a quantitative way of seeing how traders influence each other in a stock market. This idea is used to find two rare indicators of the GameStop short squeeze – one of which occurred six days before the rapid price increase, which could have potentially reduced the over $19 billion in losses of short sellers by a significant amount. The relationship predicted by the model between temperature and aggregate volume has been validated by data from the GameStop short squeeze.
 
 

기업 콘텐츠 마케팅이 소비자 지각된 가치 및 브랜드 아이덴티티에 미치는 영향에 관한 연구

[Purpose]Nowadays, companies use content marketing to create awareness and attract more consumer brand interaction. Based on this, exploring the impact of enterprise content marketing on consumer psychology and behavior is important for companies to optimize their future marketing development strategies. This paper analyzes the impact of company content marketing on consumers’ perceived value and brand identity based on the impact of company content marketing on consumers’ perceived value and brand identity. It explores the factors influenced perceived value and brand identity of company content marketing. It also explores the moderating effect of product involvement. [Methodology]In this paper, the online questionnaire was used to collect data, and the data were analyzed using SPSS and AMOS software. [Findings]The results show that the company’s content marketing significant positively affects consumer perceived value and brand identity. It also proves the moderating effect of product involvement, for products with higher product involvement, corporate content marketing has a more substantial effect on consumers’ perceived value and brand identity. [Implications]This paper summarizes the relevant theories of company content marketing, consumer perceived value, brand identity, and product involvement, and provide useful references for enterprise development.

An Investigation on Consumer Behavior Concerning “Trendy Drink” in Islamic View

This study was aimed to determine drivers of consumer trust, satisfaction and recommendation to others regarding “Trendy Drink” Mixue Ice Cream Tea. Based on literature review, most of consumer behavior studies were investigated by a single method. Furthermore, research on consumer perspectives concerning food safety in Islamic were still limited. Hence, we extended this study using mixed method. Sampling used is purposive with characteristics Moslem, 17 years old or over and has purchased Mixue Ice Cream and tea in the outlet. Firslty, open-ended interviews were carried out to gather data amplified by second phase of data collection was online survey and the data of 234 participants were analyzed utilizing SEM-PLS. Study revealed that consumers perceived food as safe attributed to its appearance, taste, smell, certification and quality. Additionally, study uncobered that food safety and information credibility were prominent drivers of consumer behavior. This paper explored an underexposed concern on product safety in Islamic view. It contributes to the marketing field empirically, theoretically and practically by extending the implementation of food safety, source of credibility theory, and Maslow`s hierarchy of need theory in the Islamic marketing and food beverages context. Additionally, applying a mixed-method for data analysis broadened the research results` generalisability.

Behind The Sensation: The Marketing and Hidden Worries of Chayan Yuese

Nowadays, the milk tea market is vibrant, and the major milk tea brands compete to display their characteristics, attracting more and more young people to consume. Therefore, the application of marketing and promotion strategies has become an important factor in business competition. To seize market share and boost sales, enterprises must combine the environment and their own conditions to apply marketing and promotion strategies. Based on previous marketing theories, this paper takes the milk tea brand Chayan Yuese as an example, analyzes its marketing deficiencies in depth, and gives appropriate suggestions in light of the actual situation. It is concluded that Chayan Yuese, as a geographically limited milk tea brand, should strengthen its core competitiveness in terms of product differentiation, speed of product renewal, ways of promotion, and the balance between delicate service and simplified process to add additional value. This study is for the reference of researchers and similarly situated companies.

MARKET INFORMATION ACCESSIBILITY AND SUCCESSFUL COLLABORATION INNOVATION: MEDIATION EFFECT ON START-UPS SALES GROWTH

Several people turned or changed to entrepreneurs and established start-ups during COVID-19. Limited access allows them to use the network competence and access market information to improve sales growth. Therefore, this research aims to contribute to a conceptual model of market information accessibility and successful collaboration innovation to ensure start-ups achieve superior sales growth. The analysis results with SEM-AMOS using the normality test resulted in 192 start-ups in Indonesia from the initial data of 280. The results showed that the level of suitability (significant) meets all the requirements and supports the hypothesis. However, market information accessibility and successful collaboration innovation play an important role in mediating the relationship between network competence and sales growth. This research contributes to the body of knowledge in the development of relational marketing theory. Moreover, start-ups’ actors need fast adaptation because their business lasts longer by seeking access to information and collaboration innovation.