Pricing, advertising, and endogenous consideration of an “insistent” product

International Journal of Industrial Organization(2022)

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摘要
•A model in which advertising compels consumers to consider the cognitively costly decision to buy the advertised product.•A consumer's likelihood of considering the decision also depends on past buying decisions.•Analysis implies that it is optimal to use a cyclical price skimming strategy for an insistent product.•Model predicts diminishing returns from repeated advertising and motivates pulsing as an optimal strategy.
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关键词
Applied theory,Behavioral economics,Endogenous consideration,Advertising,Pricing
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