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We develop a framework in which: (i) a firm can have a new product tested publicly before launch; and (ii) tests vary in toughness, holding expertise fixed.  Price flexibility boosts the strong positive impact on consumer beliefs of passing a tough test and mitigates the strong negative impact...
Persistent link: https://www.econbiz.de/10009275435
simultaneously after consideration by a reviewer with a known level of bias. Consumers observe the reviewer`s decision and a private …
Persistent link: https://www.econbiz.de/10005051077
/fail and have an innate toughness (bias) corresponding to a trade-off between the higher probability of passing a softer test …
Persistent link: https://www.econbiz.de/10005747119
We develop a framework in which: (i) a firm can have a new product tested publicly before launch; and (ii) tests vary in toughness, holding expertise fixed. Price flexibility boosts the positive impact on consumer beliefs of passing a tough test and mitigates the negative impact of failing a...
Persistent link: https://www.econbiz.de/10011042926
This paper considers the impact of reviewers on the sale of a product of unknown quality. Sales occur simultaneously after an initial review by an unbiased, pessimistic or optimistic reviewer and we examine the impact on sales in each case. We find that counter-intuitively a pessimistic reviewer...
Persistent link: https://www.econbiz.de/10005783744
The standard simple sequential herding model is altered to allow a firm with a new product to have it reviewed publicly before launch. Reviewers are either inherently pessimistic, optimistic or unbiased. We find the counter-intuitive result that a firm with a good product will prefer a...
Persistent link: https://www.econbiz.de/10005783848
In the market where inattentive buyers can fail to notice some feasible choices, the key role of marketing is to make … buyers aware of products. However, the effective marketing strategy is often subtle since marketing tactics can make buyers … cautious. This paper provides a framework to analyze an effective marketing strategy to persuade an inattentive buyer in an …
Persistent link: https://www.econbiz.de/10010281647
In the market where inattentive buyers can fail to notice some feasible choices, the key role of marketing is to make … buyers aware of products. However, the effective marketing strategy is often subtle since marketing tactics can make buyers … cautious. This paper provides a framework to analyze an effective marketing strategy to persuade an inattentive buyer in an …
Persistent link: https://www.econbiz.de/10009516790
In the market where inattentive buyers can fail to notice some feasible choices, the key role of marketing is to make … buyers aware of products. However, the eective marketing strategy is often subtle since marketing tactics can make buyers … cautious. This paper provides a framework to analyze an eective marketing strategy to persuade an inattentive buyer in an …
Persistent link: https://www.econbiz.de/10010540348
We experimentally investigate the strategic interaction between a product expert and a consumer. The expert privately chooses a ranking methodology to rank two products with uncertain relative merits; the consumer decides whether to acquire the resulting ranking report to guide her product...
Persistent link: https://www.econbiz.de/10013238861