The advent of sponsored search advertising raises many interesting questions regarding consumer's behavior, seller's advertising strategy, and the ensuing market dynamics. Online markets are characterized by significant information asymmetries and consumers rely on a number of informational cues or signals to infer the seller's quality. Of the various quality signals, advertising and price have...

Considerable research has been carried out to broaden the understanding on consumer purchase decision making process through advertising strategy and integrated communication. The research has used quantitative research method, and recruited a sample of 200 adults for the collection of data. It has been found in this research that there is a strong positive correlation exists between consumer p...

The paper explores the idea that advertising interferes with consumers’ memories of product experiences. We consider a two-period model where a monopolist sells an experience good to a buyer who may only imperfectly recall her first period experience. When advertising activates memory, it enables learning and may induce the buyer to try out the good initially. Moreover, while costly advertising...

We examine how competitive firms’ pricing and persuasive advertising strategies as well as profits are affected by changes in consumer preferences, unit production costs, and advertising efficiencies. We highlight three interesting findings from our analyses. First, when firms make endogenous advertising decisions in addition to pricing, a seemingly favorable exogenous shock to one firm alone m...

Direct-to-consumer (DTC) advertising for prescription drugs and diseases is a common method of health communication in the U.S. that may affect real-world treatment patterns. In 2018 study DTC ads psoriasis eczema, we found poor character diversity among whereby 93% characters were White. We repeated content analysis eczema to evaluate educational 2022. Our included aired between 5-11pm EST on ...

Does manufacturer advertising for a brand stimulate or suppress retail price promotions? This study addresses this controversial issue. The authors develop an analytical model that shows that the relationship between manufacturer advertising and retail price promotion depends on the role of advertising. If advertising differentiates brands and suppresses consumer response to retail promotion, t...

We consider a setting where agents select among competing products of unknown quality by costly sequential search. The agents are active on an online social network, and late movers benefit from possibly being able to see early movers’ purchase decisions. In this setting we consider the impact of advertising by firms, and the incentives of the underlying social network platform. We consider dis...

Despite the empirical relevance of advertising strategies in concentrated markets, the economics literature is largely silent on the effect of persuasive advertising strategies on pricing, market structure and increasing (or decreasing) dominance. In a simple model of persuasive advertising and pricing with differentiated goods, we analyze the interdependencies between ex-ante asymmetries in co...

We model the idea that when consumers search for products, they first visit the firms which advertise more, or the firms whose advertising is more salient. Equilibrium prices and advertising efforts are increasing in consumer search costs. By contrast, equilibrium profits are nonmonotonic in search costs so firms are not necessarily better off if search costs rise. In our model, firms are engag...