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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- Kfir Eliaz & Ran Spiegler, 2011.
"Consideration Sets and Competitive Marketing,"
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"On the Strategic Use of Attention Grabbers,"
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7863, C.E.P.R. Discussion Papers.
- Paola Manzini & Marco Mariotti, 2007. "Sequentially Rationalizable Choice," American Economic Review, American Economic Association, vol. 97(5), pages 1824-1839, December.
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