Advertising in Customer Markets
AbstractRepeat purchasing customers are more frequently informed of their regular firm's price than are other customers. Consequently customers leave the firm faster following a price increase than they arrive following a price decrease. Previous models treat the rate of customer acquisition following a price fall as exogenous. This paper introduces a two-period customer market model in which a firm may increase the rate of customer acquisition to it through advertising. It is demonstrated that, although the introduction of advertising might reduce the stickiness and the asymmetric response of price that characterizes customer markets, these effects are not eliminated. Copyright 1995 by Scottish Economic Society.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Tasmania - Department of Economics in its series Papers with number 1993-03.
Length: 19 pages
Date of creation: 1993
Date of revision:
Contact details of provider:
Postal: UNIVERSITY OF TASMANIA, DEPARTMENT OF ECONOMICS, HOBART TASMANIA 7001 AUSTRALIA.
Phone: +61 3 6226 7672
Fax: +61 3 6226 7587
Web page: http://www.utas.edu.au/economics-finance/
More information through EDIRC
consumption ; pricing;
Other versions of this item:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Fridriksson, Kari S. & Zoega, Gylfi, 2012. "Advertising as a predictor of investment," Economics Letters, Elsevier, vol. 116(1), pages 60-66.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.