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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
This paper studies whether exposure to mass media and liking advertising are associated with an increased impulse buy … advertising in general is positively associated with impulse buying; for males, having a preference for informative advertising is …
Persistent link: https://www.econbiz.de/10010285191
Despite the empirical relevance of advertising strategies in concentrated markets,the economics literature is largely …) dominance.In a simple model of persuasive advertising and pricing with differentiated goods,we analyze the interdependencies … between ex-ante asymmetries in consumer appeal,advertising and prices. Products with larger initial appeal to consumers willbe …
Persistent link: https://www.econbiz.de/10009418801
We consider a model of a TV oligopoly where TV channels transmit advertising and viewersdislike such commercials. We … substitutes, there will be underprovisionof advertising relative to social optimum. We also find that the more viewers dislike ads …, themore likely it is that welfare is increasing in the number of advertising financed TV channels... …
Persistent link: https://www.econbiz.de/10005861187
This paper presents the computational model of consumer behaviour. We consider twosources of product specic consumer skill acquisition, termed here as learning how to consume:learning by consuming and consumer socialization. Consumers utilize these two sources inorder to derive higher valuations...
Persistent link: https://www.econbiz.de/10005867733
-loop system. We derive a Nash equilibrium and examine the influence of advertising. We show for the monopoly case that a reduction … ; pricing ; advertising …
Persistent link: https://www.econbiz.de/10003850650
Pricing strategies may include the advertising of meeting-the-competition clauses (MCCs). We show in a specific spatial … allowing for price discrimination between these consumers. -- Meeting-the-competition clauses ; advertising ; price …
Persistent link: https://www.econbiz.de/10003957044
investment-based model to understand the impact of advertising expenditures on stock returns and firm value. In addition, by … interpreting advertising expenditures as an investment in brand capital, the approach in this paper provides a novel way to measure … advertising expenditures which standard asset pricing models cannot. The estimation results also show that brand equity accounts …
Persistent link: https://www.econbiz.de/10009356642
advertising in that medium. We apply a simple model of a product market with network externalities where firms buy advertising …. The paper is the first combining a study of media markets with a behavioral foundation of how advertising affects the … demand for the advertised products. -- Advertising ; Media Market ; Availability Heuristic ; Network Externalities …
Persistent link: https://www.econbiz.de/10009373431
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 … heterogeneity in advertising costs. Firms whose advertising is more salient and therefore raise attention more easily charge lower …
Persistent link: https://www.econbiz.de/10011378082