We analyze the strategic behavior of firms when demand is determined by a rule of thumb behavior of consumers. We assume consumer dynamics where individual consumers follow simple behavioral decision rules governed by imitation and habit as suggested in consumer research. On this basis, we...

Die Autoren analysieren, ob ein Social Media Newsroom eine Alternative zur herkömmlichen Pressemitteilungen via Email in der Luxusbranche ist. Ausgehend vom Intereffikationsmodell wird aufgezeigt, dass Journalismus und PR in einer Wechselbeziehung der gegenseitigen Einflussnahme stehen. Via...

The rise of social media is causing challenges for brand managers of premium manufacturers in the fast moving consumer goods industry. Social Media platforms as innovative and open communication channels have to be integrated in the established media mix while preventing the damage of the...

The advertising efforts in social networks grow every year. Since their appearance in the late 1990s Social Network Web Sites were considered as a uniform group. The only differentiation factors were the number of users and the amount of traffic passed through the site. This paper classifies the...

Disclaimers are widely used by firms to warn customers of dangers and limitations of their products, and are persuasive when the issue is important. We examine the effects of mandatory disclaimers. Speech restrictions conflict with basic economic incentives. Sellers are motivated by profit to...

Advertising pre-testing (or copy testing) is often employed in sales forecasting. It helps to quantify the impact of advertising on generating awareness, trial and repeat purchases. This paper reviews existing copy testing practices and makes some practical recommendations in the context of...

The optimal control problem of determining advertising efforts for a seasonal good in a heterogeneous market is considered. We characterize optimal advertising exposures under different conditions: the general situation in which several wide-spectrum media are available, under the assumption of...

The online environment's most powerful followers talk in glorious terms about the fact that the Internet will be changing the whole world media structure. Certainly, it is factual that technology affects the media nature, but it is by the same means false to reason that the existent...

Digital video recorder proliferation and new commercial audience metrics are making television networks' revenues more sensitive to audience losses from advertising. There is currently limited understanding of how traditional advertising and product placement affect television audiences. We...

In this paper we use published information to provide analyze the economic value of Direct to Consumer (DTC) advertising. We use information on: the effect of DTC in generating patient visits; the effect of patient visits and mentions of a drug in generating prescriptions; and the effect of...