The ability to empathize is essential to everyday life, and one cannot interpret simple movements without empathy. It is essential in healing, teaching, and even modern societies rely on it for commercials or films. For individuals who consider advertising important, does the seemingly high...

We employ experimental economics techniques to gain insight into the factors that affect consumer susceptibility to fraudulent advertising. We asked participants to rate the credibility of a series of mock-ups of plausible and implausible print advertisements that we designed. We then measured a...

This paper investigates the influence of perceived source credibility on the effectiveness of health-related public service announcements (PSAs) and electronic word-of-mouth (eWOM) communications. Findings indicate that online commenters who are perceived to be credible are instrumental in...

This working paper presents the findings of copy test research on consumer perceptions of food and dietary supplement print advertisements containing qualified health claims for diet-disease relationships that lack a high level of scientific support. The research was motivated by court decisions...

With the increase in the level of consumer awareness towards green products, “Green Marketing” has started gaining importance since 1970s but getting further momentum since last two decades. Many companies have added and/or modified their products and process in order to position themselves...

We model the idea that when consumers search for products, they first visit the firm whose advertising is more salient. The gains a firm derives from being visited early increase in search costs, so equilibrium advertising increases as search costs rise. This may result in lower firm profits...

Complementing the existing literature on anchoring effects and loss aversion, we analyze how firms can influence loss–averse consumers’ willingness to pay by product information in the form of informative advertising rather than by prices. We find that consumers’ willingness to pay is...

This paper is the first to estimate the impact of exposure to deceptive advertising on consumption of the advertised product and its substitutes. We study the market for over-the-counter (OTC) weight-loss products, a market in which deceptive advertising is rampant and products are generally...

Complementing the existing literature on anchoring effects and loss aversion, we analyze how firms can influence loss-averse consumers' willingness to pay by product information in the form of informative advertising rather than by prices. We find that consumers' willingness to pay is greatest...