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 adverse selection environment. We investigate how an attention-grabbing marketing can "backfire" and when it can be eective.
|Date of creation:||04 Apr 2012|
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NajEcon Working Paper Reviews
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CEPR Discussion Papers
7863, C.E.P.R. Discussion Papers.
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