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How do firms develop marketing strategy when consumers seek to satisfy both quality and status-related considerations? We develop an analytical model to study this issue, examining both pricing and product management decisions in markets for conspicuous durable goods. Our analysis yields many...
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The broad takeaway from the literature on cause-related marketing products, where firms donate to charities when consumers make a purchase, is that "warm glow" can increase demand. However, recent field results show that embedding donations increases demand only if the price of the product is...
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