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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- 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.
- Brekke, Kjell Arne & Rege, Mari, 2006.
"Advertising as a Distortion of Social Learning,"
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 205-18, June.
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: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.