Exposure order effects and advertising competition
This paper applies the theories of exposure order effects, developed in the psychology literature, to an industrial organization model to explore their role in advertising competition. There are two firms and infinitely many identical consumers. The firms produce a homogeneous product and distribute their brands through a common retailer. Consumers randomly arrive at the retailer and buy their most preferred brands. The order in which a consumer sees the advertising messages affects his brand preferences. Under the primacy effect the consumer prefers the brand he first saw advertised, under the recency--the last encountered brand. The equilibrium of the advertising game is characterized separately under the primacy and the recency effects. In the first setting all consumers are initially unaware of the product existence. The equilibrium advertising intensities, remarkably, do not depend on the type of exposure order effect. In the other two settings some consumers have already formed their brand preferences. The primacy and the recency effects give rise to different equilibrium outcomes.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brekke Kjell Arne & Rege Mari, 2007.
"Advertising as a Distortion of Social Learning,"
The B.E. Journal of Theoretical Economics,
De Gruyter, vol. 7(1), pages 1-18, October.
- Brekke, Kjell Arne & Rege, Mari, 2006. "Advertising as a Distortion of Social Learning," Memorandum 23/2006, Oslo University, Department of Economics.
- Haugtvedt, Curtis P & Wegener, Duane T, 1994. " Message Order Effects in Persuasion: An Attitude Strength Perspective," Journal of Consumer Research, Oxford University Press, vol. 21(1), pages 205-218, June.
- Brunel, Fr D Ric F. & Nelson, Michelle R., 2003. "Message Order Effects and Gender Differences in Advertising Persuasion," Journal of Advertising Research, Cambridge University Press, vol. 43(03), pages 330-341, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:71:y:2009:i:2:p:528-538. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
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.