Persuading consumers with social attitudes
Copyright policy )Persuading consumers with social attitudes
This paper provides a formal analysis of persuasive advertising when firms compete for consumers with heterogenous social attitudes towards the consumption by others. Deriving product demand from primitives, we show 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 their competitors. In addition, we show that an increase in the average degree of conformity among consumers reinforces asymmetries between firms.
- University of St. Gallen Switzerland
- Department of Economics Indonesia
- Departement of Economics United States
- Department of Economics Switzerland
- University of Zurich Switzerland
330, consumption externality, Betriebliche Preispolitik, L21, Produktdifferenzierung, Soziale Werte, 2002 Economics and Econometrics, 1407 Organizational Behavior and Human Resource Management, 10004 Department of Business Administration, Advertising, Konsuminterdependenz, advertising, D11, L15, ddc:330, Consumption externality, advertising, social attitude, consumption externality, quality, M37, Quality, social attitude, 330 Economics, quality, Social attitude, Advertising, social attitude, consumption externality, quality, Werbung, Oligopol, D43, Theorie, jel: jel:D43, jel: jel:L21, jel: jel:D11, jel: jel:L15, jel: jel:M37
330, consumption externality, Betriebliche Preispolitik, L21, Produktdifferenzierung, Soziale Werte, 2002 Economics and Econometrics, 1407 Organizational Behavior and Human Resource Management, 10004 Department of Business Administration, Advertising, Konsuminterdependenz, advertising, D11, L15, ddc:330, Consumption externality, advertising, social attitude, consumption externality, quality, M37, Quality, social attitude, 330 Economics, quality, Social attitude, Advertising, social attitude, consumption externality, quality, Werbung, Oligopol, D43, Theorie, jel: jel:D43, jel: jel:L21, jel: jel:D11, jel: jel:L15, jel: jel:M37
selected citations These citations are derived from selected sources.This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).9 popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.Average influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).Average impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.Average
Citations provided by BIP!Popularity provided by BIP!