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The paper is based on the acknowledgement that properties of markets stemming from features of demand are too frequently overlooked in the economic literature, and a re-balancing is necessary to properly account for theoretical and empirical phenomena. We sustain that one of the most relevant...
Persistent link: https://www.econbiz.de/10010328511
Product quality is often unobservable ex-ante and consumers rely on experts' judgments, sometimes in the form of ratings or awards. Do awards affect consumers' choices or, conversely, are they conferred on the most popular products? To disentangle this issue, we use data about the most important...
Persistent link: https://www.econbiz.de/10010481659
Individuals who are unaware of the price do not derive more enjoyment from more expensive wine. In a sample of more than 6,000 blind tastings, we find that the correlation between price and overall rating is small and negative, suggesting that individuals on average enjoy more expensive wines...
Persistent link: https://www.econbiz.de/10010281152
emerging and developing countries. This fact is surprising considering the background of relatively low local advertising …Das internationale Werbefestival in Cannes ist einer der wichtigsten internationalen Gradmesser für kreative Werbung …
Persistent link: https://www.econbiz.de/10010420968
) industry. I present an empirical discrete-choice model of limited information on the part of consumers, where advertising … influences the set of products from which consumers choose to purchase. Multi-product firms choose prices and advertising in each … medium to maximize their profits. I apply the model to the US PC market, in which advertising expenditures are over $2 …
Persistent link: https://www.econbiz.de/10010263301
This paper analyzes persuasive advertising and pricing in oligopoly if firms sell differentiated products and consumers … that the demand-enhancing effect of persuasive advertising varies across consumers and increases in the average degree of … conformity. In equilibrium, both quality and cost leaders choose higher advertising intensities and charge higher prices than …
Persistent link: https://www.econbiz.de/10010274911
By combining a theory of herding behavior with the phenomenon of availability heuristic, this paper shows that non-informative advertisements can affect people’s choices by influencing their perception of product quality. We present a model in which people can learn about product quality by...
Persistent link: https://www.econbiz.de/10010284386
Advertising in our days is moving to the social media since consumers are spending more and more time on such platforms … meaningful content, which means the advertising is ultra-customized based on the user activity and preferences, but this kind of … personalisation can easily have an unpleasant side effect. The advertising for touristic destinations can become very complex by using …
Persistent link: https://www.econbiz.de/10014476258
environment. The most implemented tool for marketing communications - advertising, is losing its power for effective … communications; customers are becoming over-advertised and resistant to traditional advertising stimuli. Advertising, as one …, emphasizing the role of other elements but advertising, with more personalized and interactive functions. One method for …
Persistent link: https://www.econbiz.de/10011787184
Insurance intermediation services are information services which exhibit strong information asymmetries. We empirically analyze whether signaling works in the German market for insurance intermediation services. For this a signal must increase service quality and be easily identifiable by...
Persistent link: https://www.econbiz.de/10010319249